Germany moves to curb Nigeria’s $1.5bn yearly gas flaring loss

Germany is launching a new initiative to help Nigeria tackle its significant economic losses from gas flaring, estimated at $1.5 billion annually. The program aims to convert this wasted gas into economic value, supporting Nigeria's energy transition and reducing greenhouse gas emissions.

Annett Günther, the German Ambassador to Nigeria, announced the program at the Nigeria Oil and Gas Conference in Abuja. Commissioned by the German Foreign Office, the initiative will investigate methods to utilize the gas currently flared across Nigeria. Potential uses include domestic consumption, industrial applications, and the production of hydrogen.

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So, I think most recently the German Foreign Office commissioned a programme to translate our energy partnership into practice in an area with a new project looking closely into flared gas and how it can be put into economic value.

"So, I think most recently the German Foreign Office commissioned a programme to translate our energy partnership into practice in an area with a new project looking closely into flared gas and how it can be put into economic value," Günther stated. She highlighted that Nigeria flares approximately 5.3 billion cubic meters of gas annually, making it the seventh-highest country globally for gas flaring and resulting in substantial economic losses.

This new program is an extension of the long-standing energy partnership between Germany and Nigeria. The collaboration encompasses various aspects of Nigeria's Energy Transition Plan, including low-carbon power generation, hydrogen development, natural gas infrastructure, and climate action. Both nations are committed to global climate goals, with Nigeria aiming for net-zero emissions by 2060 and Germany by 2045. Günther emphasized the importance of this cooperation for both countries, especially in light of global energy market disruptions.

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Cooperation is very important, and it’s a real big market, and you know with all the global disruptions that we have seen in the Middle East, everybody wants to diversify because you never know what’s going to happen next, and that’s why even both Germany and this corporation are very important also for our companies.