The Nigerian Upstream Petroleum Regulatory Commission has warned investors awarded flare gas commercialisation sites that their permits could be revoked if they fail to demonstrate significant progress within one year.
The regulator said it would no longer allow awarded flare gas sites to remain idle indefinitely as Nigeria pushes to end routine gas flaring by 2030.
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.
In a statement issued on Wednesday by the NUPRC Head of Corporate Communications and Media, Eniola Akinkuotu, Eyesan provided updates on the Nigerian Gas Flare Commercialisation Programme and other initiatives being implemented by the commission.
She said the regulator would assess each awarded site one year after the grant to determine whether the investor had made adequate progress.
“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.”
The NUPRC boss said the gas commercialisation programme had continued to advance despite initial resistance from some industry operators.
She disclosed that 43 flare gas sites had initially been identified for award, with 27 subsequently allocated to investors.
According to her, implementation activities are currently underway at the awarded locations.
The NGFCP was established to encourage investors to harness gas that would otherwise be flared by granting access to designated flare sites for the development of commercially viable projects.
The initiative is expected to reduce environmental pollution associated with gas flaring while increasing gas supply for power generation, industries and other productive activities.
It is also designed to generate additional revenue and create employment opportunities as Nigeria seeks to derive greater economic value from its gas resources.
Nigeria has more than 215 trillion cubic feet of proven natural gas reserves, while its estimated total gas resource base is put at about 600 trillion cubic feet.
Eyesan also briefed the minister on the implementation of the Host Community Development Trust framework under the Petroleum Industry Act.
She said 173 Host Community Development Trusts had so far been incorporated and 147 funded, while more than 1,001 projects were ongoing across host communities.
More than 200 projects, she added, had already been completed and commissioned.
The framework was established to address longstanding grievances in oil-producing communities and ensure that host communities benefit more directly from petroleum operations.
Responding, Ekpo urged the NUPRC and other stakeholders to intensify the implementation of the gas commercialisation programme.
The minister said Nigeria needed to move faster towards its 2030 target of ending routine gas flaring and converting wasted gas into economically productive resources.
“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 said.
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