The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has warned companies awarded flare gas sites under the Nigerian Gas Flare Commercialisation Programme, NGFCP, that they risk sanctions if they fail to make significant progress in utilising the sites.
The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, disclosed this in Abuja during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo.
A statement by the Commission’s Head of Corporate Communications and Media, Eniola Akinkuotu, said Eyesan, while presenting an update on the implementation of the NGFCP, explained that the Commission would assess the performance of awardees one year after their awards were granted.
According to the statement, “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 NGFCP had continued to make significant progress despite initial resistance from some operators.
She disclosed that 43 flare gas sites were initially identified for award under the programme, with 27 sites successfully awarded so far and implementation efforts currently ongoing.
Eyesan said Nigeria has more than 215 trillion cubic feet (TCF) of proven natural gas reserves, while the country’s estimated total reserve base stands at about 600 TCF.
She noted that Nigeria’s substantial gas resources provided a strong foundation for power generation, industrialisation, exports and wider economic development.
In his remarks, Ekpo called for deliberate and aggressive implementation of the country’s gas commercialisation programme to ensure Nigeria achieves its 2030 target of ending routine gas flaring.
The minister said the country must stop allowing valuable gas resources to be wasted through flaring and instead transform them into products and services capable of contributing to economic growth.
“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.
Source: NUPRC
