The Nigerian Upstream Petroleum Regulatory Commission has cautioned that firms handed flare gas commercialisation sites could forfeit their permits should they fail to record meaningful progress in developing the assets within a year of the award.
This caution comes at a time when Nigeria is stepping up efforts to bring an end to routine gas flaring by 2030, with the goal of converting gas that would otherwise be burnt off into products and services that can drive power generation, industrial growth and broader economic expansion.
According to The PUNCH, the Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, made the disclosure during a working visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.
The disclosure was contained in a statement released on Wednesday by the NUPRC’s Head of Corporate Communications and Media, Eniola Akinkuotu, in which Eyesan gave updates on the implementation of the Nigerian Gas Flare Commercialisation Programme and other key commission initiatives.
Eyesan noted that 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.
“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary.”
Eyesan added that the programme had continued to record progress despite resistance from some operators during the early stages of implementation.
She revealed that 43 flare gas sites had originally been identified for award under the programme, noting that 27 of those sites had so far been successfully awarded to investors.
According to the NUPRC chief, implementation activities are currently underway at the sites that have already been awarded.
The Nigerian Gas Flare Commercialisation Programme was set up to commercialise the country’s flared gas resources by granting investors access to flare sites for the development of commercially viable gas projects.
The programme is expected to help Nigeria cut environmental pollution, generate jobs and boost revenue, while also increasing the volume of gas available for domestic industries and other productive purposes.
This development comes as Nigeria works to extract greater value from its vast gas resources. The country currently holds more than 215 trillion cubic feet of proven gas reserves, while its total estimated gas resource base stands at about 600 trillion cubic feet.
The NUPRC boss also provided an update on the implementation of the Host Community Development Trust framework established under the Petroleum Industry Act.
She explained that the framework was designed to address longstanding grievances in oil-producing communities and to ensure that petroleum resources contribute more directly to sustainable development in host areas.
“To date, 173 Host Community Development Trusts have been incorporated, 147 have been funded, over 1,001 projects are currently ongoing, while more than 200 projects have been successfully commissioned across host communities,” she said.
In his remarks, the Minister of State for Petroleum Resources (Gas), Ekpo, called for more deliberate and aggressive implementation of Nigeria’s gas commercialisation programme.
He said the country must quicken the pace of efforts to meet 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 utilization,” the minister said.
