Nigeria deal to supply Germany more gas to cut flaring by much

Nigerian and German companies on Tuesday signed two agreements in Berlin that include a $500 million renewable energy pact and a gas export deal that could help cut gas flaring, a presidential spokesperson said.

The first agreement, between Union Bank of Nigeria and Germany’s DWS Group, targets attracting $500 million in investment for renewable energy projects across Nigeria, particularly in rural communities.

The second, signed between Riverside LNG of Nigeria and Germany’s Johannes Schuetze Energy Import AG, establishes a gas export partnership. Under this accord, Nigeria will provide Germany with 850,000 tons of natural gas annually, with the potential to rise to 1.2 million tons. The first deliveries are anticipated in 2026.

The agreement will facilitate the processing of approximately 50 million cubic feet of natural gas per day, which would otherwise have been flared.

Gas flaring risks

Nigeria possesses Africa’s largest gas reserves, estimated at over 200 trillion cubic feet. However, owing to inadequate processing infrastructure, the country flares about 300 million cubic feet of gas daily, making it one of the top seven gas-flaring countries in the world.

Gas flaring is a major source of environmental pollution and greenhouse gas emissions in the Niger Delta. It can also harm human health, which can be long-lasting.

The World Bank estimates that around 2 million people in the country live less than 4 km away from a flare site in the Niger Delta.

Last year, Nigeria recorded the biggest reduction in gas flaring in the world, beating the United States, Mexico and other countries.

The partnership with Germany is expected to substantially curtail this wastage and harness this valuable resource for energy generation.

President Bola Tinubu, currently attending the G20 Compact with Africa conference in Berlin, welcomed the agreements, underlining their potential to bolster Nigeria’s energy sector and address environmental concerns.