The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned companies awarded flare gas commercialisation sites that they risk losing their permits if they fail to demonstrate significant progress in developing the assets within one year.
The warning comes as Nigeria intensifies efforts to end routine gas flaring by 2030 and convert gas currently being burnt into commercially useful products and services that can support power generation, industrialisation and economic growth.
The Commission Chief Executive, Oritsemeyiwa Eyesan, disclosed this during a working visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.
According to a statement issued on Wednesday by the NUPRC Head of Corporate Communications and Media, Eniola Akinkuotu, Eyesan provided updates on the implementation of the Nigerian Gas Flare Commercialisation Programme (NGFCP) and other major initiatives of the commission.
Eyesan said the regulator would no longer permit flare gas sites awarded under the programme to remain undeveloped indefinitely.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Eyesan said.
She added that companies that fail to make sufficient progress could face regulatory sanctions, including the revocation of their awards.
Eyesan said the gas commercialisation programme had continued to advance despite resistance from some operators during its early implementation.
She disclosed that 43 flare gas sites were initially identified for award, with 27 sites so far successfully awarded to investors.
Implementation activities are currently ongoing at the awarded sites, according to the NUPRC chief executive.
The NGFCP was established to commercialise Nigeria’s flared gas resources by providing investors with access to flare sites for the development of viable gas projects.
The programme is expected to help reduce environmental pollution, create employment, generate additional revenue and increase the amount of gas available for domestic industries and other productive uses.
Nigeria is seeking to unlock greater economic value from its vast natural gas resources. The country has more than 215 trillion cubic feet of proven gas reserves, while its estimated total gas resource base is about 600 trillion cubic feet.
Eyesan also provided an update on the implementation of the Host Community Development Trust framework established under the Petroleum Industry Act.
She said the framework was designed to address longstanding grievances in oil-producing communities and ensure that petroleum resources contribute more directly to sustainable development in host areas.
According to her, 173 Host Community Development Trusts have been incorporated and 147 have been funded, while more than 1,001 projects are currently ongoing and over 200 projects have been completed and commissioned across host communities.
In his remarks, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, called for more deliberate and aggressive implementation of Nigeria’s gas commercialisation programme.
He said the country must accelerate efforts to achieve its target of ending routine gas flaring by 2030.
“The core objective is to add value to our gas resources by converting them into critical products and services. We must move away from environmental pollution and toward productive resource utilisation,” the minister said.
