Gas connection agreement signed for Nigeria's first flared gas powered digital infrastructure, bitcoin mining

 Green Flare, in collaboration with Dawcon Energy, an awardee of the 2022 Nigerian Gas Flare Commercialization Programme (NGFCP), has signed a Gas Connection Agreement with the Oil Mining License (OML) 30 Joint Venture to launch Nigeria’s first-ever flare gas-powered digital infrastructure project. 

The agreement, developed under the oversight of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), aims to reduce greenhouse gas emissions by facilitating the commercialization of flare gas derived from upstream oil and gas production. This will see the transformation of gas that would otherwise be flared, into clean energy to power sustainable, high-performance modular data centers, initially focusing on Bitcoin mining, with plans to expand into AI computing and high-performance data processing.

The OML 30 Joint Venture comprises the Nigerian National Petroleum Corporation Exploration and Production Ltd. (NNPC E&P), Shoreline Natural Resources Ltd., and Heritage Energy Operational Services Ltd. (HEOSL). 

The project marks a significant milestone, establishing what is described as Nigeria’s first Bitcoin mining operation powered by flare gas generated during oil production. The initial phase will utilize flare gas from three sites in Delta State, Nigeria—Afesiere, Eriemu, and Kokori—which are expected to deliver a combined total of 53MW of mining power.

In addition to its industrial applications, the project includes plans to electrify underserved rural communities as part of a broader host community development initiative, demonstrating a commitment to both environmental sustainability and social impact.

TEMPLARS advised Dawcon Energy on the project, providing project structuring, strategic legal and regulatory advisory services, and negotiation support for the Gas Connection Agreement with the OML 30 joint venture partners.