The Nigerian Upstream Petroleum Regulatory Commission has warned that companies awarded flare gas commercialisation sites could lose their permits if they fail to make significant progress in developing the assets within one year.

The warning comes as Nigeria steps up efforts to end routine gas flaring by 2030 and harness gas that would otherwise be burnt for power generation, industrialisation and economic development.

The Commission Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, gave the warning 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 and other key initiatives being undertaken by 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. “Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary.”

Eyesan said the programme had continued to record progress despite initial resistance from some operators. She disclosed that 43 flare gas sites were initially identified for award under the programme, of which 27 had so far been successfully awarded to investors.

According to the NUPRC chief, implementation activities are ongoing at the awarded sites.

The NGFCP was introduced to commercialise Nigeria’s flared gas resources by providing investors with access to flare sites to develop commercially viable gas projects.

The programme is expected to reduce environmental pollution, create jobs and generate additional revenue for the country, while increasing gas supply to domestic industries and other productive sectors.

The development comes as Nigeria seeks to unlock greater value from its vast gas resources. The country has more than 215 trillion cubic feet of proven gas reserves, while its estimated total gas resource base is put at about 600 trillion cubic feet.

The CCE also provided an update on the implementation of the Host Community Development Trust framework established under the Petroleum Industry Act.