NUPRC moves to revoke idle flare gas permits

The Nigerian Upstream Petroleum Regulatory Commission has warned investors holding flare gas commercialisation awards that failure to make meaningful progress within a year could lead to the cancellation of their permits.

The regulator said it was tightening oversight of the Nigerian Gas Flare Commercialisation Programme as Nigeria pushes to end routine gas flaring by 2030 and channel wasted gas into productive economic activities.

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 an update on the implementation of the NGFCP and other programmes being pursued by the commission.

She said investors would no longer be allowed to hold flare gas sites without demonstrating tangible progress towards developing them.

“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.”

According to the NUPRC boss, the commercialisation programme had overcome some of the resistance encountered when implementation began and was now recording progress.

She disclosed that 43 flare gas sites were initially designated for the programme, with 27 subsequently awarded to investors.

Implementation work, she added, was ongoing at the sites already awarded.

The NGFCP was established to turn gas currently being flared into commercially viable projects by providing investors with access to designated flare sites.

The initiative is expected to reduce gas-related environmental pollution while creating employment, generating government revenue and increasing the supply of gas for power generation and industrial activities.

The regulator’s renewed push comes as the Federal Government seeks to derive greater economic value from Nigeria’s substantial natural gas resources.

Nigeria has more than 215 trillion cubic feet of proven gas reserves, while its estimated total gas resources are put at about 600 trillion cubic feet.

Eyesan also briefed the minister on progress under the Host Community Development Trust framework created by the Petroleum Industry Act.

She said the mechanism was designed to address longstanding concerns in oil-producing communities by ensuring that petroleum operations contribute more directly to development in host areas.

“To date, 173 Host Community Development Trusts have been incorporated, 147 have been funded, over 1,001 projects are currently ongoing, while more than 200 projects have been successfully commissioned across host communities,” she said.

Ekpo, in his response, urged stakeholders to adopt a more aggressive approach to gas commercialisation, stressing the need to accelerate efforts towards meeting Nigeria’s 2030 target for ending routine gas flaring.

“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,” the minister said.