The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned allottees of gas flaring sites about revoking their awards if they do not show progress in the utilization of the sites.
The Chief Executive Officer of the Commission (CCE), Oritsemeyiwa Eyesan, gave the warning when she visited the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.
Presenting an update on the Nigerian Flared Gas Marketing Program (NGFCP), Eyesan said the NUPRC would not only evaluate the performance of the awardees one year after the award was made, but added that 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 said 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 provided a solid foundation for power generation, industrialization, exports and broader economic development, noting that the country currently has over 215 trillion cubic feet (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 Petroleum Industry Act (PIA), the CCE stated that the initiative was designed to address long-standing concerns in oil-producing communities and promote sustainable development through petroleum resources.
He said available data had revealed that the implementation of the Trust had contributed to significant reductions in oil theft and spills, while improving relationships between operators and host communities, adding that 173 Host Community Development Trusts had so far been formed, 147 funded, with more than 1,001 projects underway and more than 200 projects already commissioned in 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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