The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has threatened allottees of gas flaring sites with possible revocation of their awards if they do not show progress in utilizing the sites.
The Chief Executive Officer of the Commission (CCE), Mrs. Oritsemeyiwa Eyesan, gave the warning when she visited the Minister of State for Oil and Gas Resources, Ekperikpe Ekpo, in Abuja.
Presenting an update on the Nigerian Gas Flaring Commercialization Program (NGFCP), Eyesan said the NUPRC would not only evaluate the performance of the awardees one year after the award was made, but where insufficient progress was recorded, the Commission would take appropriate regulatory action, including revocation of the award where necessary.
“One year after the award is granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” he said.
He stated that despite initial resistance from some operators, the flared gas commercialization program has continued to make significant progress, revealing that 43 flared gas sites were originally identified for award, with 27 sites successfully awarded so far and implementation efforts underway.
According to her, Nigeria’s vast gas resources provide a strong foundation for power generation, industrialization, exports and broader economic development, as the country currently has over 215 trillion cubic feet of TCF of proven gas reserves, with an estimated total reserve base of around 600 TCF.
While highlighting progress in the implementation of the Host Community Development Trust framework established under the PIA Petroleum Industry Act, the CCE stated that the initiative was designed to address long-standing concerns in oil-producing communities and promote sustainable development through petroleum resources.
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He said available data revealed that the implementation of the Trust had contributed to significant reductions in oil theft and spills, while improving relations between operators and host communities. He added that so far 173 Host Community Development Trusts had been established, 147 funded, with more than 1,001 projects underway and more than 200 projects already commissioned in the host communities.
The minister called for the deliberate and aggressive implementation of the country’s gas commercialization program to enable Nigeria to meet its 2030 target of eliminating routine gas flaring.
Ekpo said the goal should be to convert the country’s gas resources into critical products and services rather than allowing them to contribute to environmental pollution.
He said: “The main 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 towards productive utilization of the resources.”
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