Regulator says 27 flare sites have been awarded as Nigeria pushes to turn wasted gas into economic value….
Companies that secured flare gas sites under Nigeria’s Gas Flare Commercialisation Programme, NGFCP, could have their awards revoked if they fail to show substantial progress in putting the sites to productive use, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has warned.
The Commission’s Chief Executive, Oritsemeyiwa Eyesan, gave the warning in Abuja while presenting an update on the implementation of the programme during a working visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.
Eyesan said the NUPRC would not allow awarded sites to remain idle, noting that beneficiaries would be assessed one year after receiving their awards.
She explained that the review would determine whether awardees had made sufficient progress, with companies falling short of expectations facing regulatory measures.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress.
“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary.”
The NUPRC chief said the gas flare commercialisation initiative had continued to move forward despite resistance from some operators at the early stages of the programme.
She disclosed that 43 flare gas sites were originally identified for allocation, while 27 sites have now been successfully awarded and are at various stages of implementation.
Beyond addressing gas flaring, Eyesan stressed the scale of Nigeria’s gas resources, putting the country’s proven reserves at more than 215 trillion cubic feet, while the estimated total reserve base stands at about 600 trillion cubic feet.
She said the size of the country’s gas endowment provides an opportunity to strengthen electricity generation, expand industrial activity, increase exports and create wider economic value.
For the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, achieving those benefits will require a more aggressive approach to implementing Nigeria’s gas commercialisation strategy.
Ekpo said the Federal Government remains committed to meeting the country’s 2030 target of ending routine gas flaring, stressing that gas currently being wasted should instead be converted into commercially useful products and services.
“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,” Ekpo stated.
