The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned awardees of gas flare sites about the revocation of their awards if they fail to show progress in utilising the sites.
The Commission’s Chief Executive (CCE), Mrs 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 Gas Flare Commercialisation Programme (NGFCP), Eyesan said the NUPRC would not only assess the performance of awardees one year after an award was granted, but added that where insufficient progress was recorded, the Commission would take appropriate regulatory measures, including revocation of the award where necessary.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” she said.
She stated that despite initial resistance from some operators, the gas flare commercialisation programme has continued to make significant progress, and disclosed that 43 flare gas sites were originally identified for award, with 27 sites so far successfully awarded and implementation efforts ongoing.
According to her, Nigeria’s vast gas resources provided a strong foundation for power generation, industrialisation, exports, and broader economic development, noting that the country currently has more than 215 trillion cubic feet (TCF) of proven gas reserves, with an estimated total reserve base of about 600 TCF.
While highlighting the 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 longstanding concerns in oil-producing communities and promote sustainable development through petroleum resources.
She said available data had revealed that implementation of the Trust had contributed to significant reductions in oil theft and oil spills while improving relations between operators and host communities, adding that 173 Host Community Development Trusts had so far been incorporated, 147 funded, with more than 1,001 projects ongoing and over 200 projects already commissioned across host communities.
The Minister called for deliberate and aggressive implementation of the country’s gas commercialisation programme to enable Nigeria to meet its 2030 target of eliminating routine gas flaring.
Ekpo said the objective 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 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 utilization.”