The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned investors awarded flare-gas sites that their awards could be revoked if they fail to make considerable progress within one year.
The Commission Chief Executive, NUPRC, Oritsemeyiwa Eyesan, disclosed this during a working visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja on Tuesday.
Eyesan, who gave an update on the Nigerian Gas Flare Commercialisation Programme (NGFCP), said the Commission would assess each award one year after it was granted to determine the level of progress made.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” she said.
“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary.”
The NGFCP is aimed at getting investors to capture and commercialise gas currently being flared from oil production sites, rather than allowing it to be wasted and released into the atmosphere.
Eyesan said 43 flare gas sites were originally identified for award, with 27 sites successfully awarded so far, while implementation is ongoing.
The latest warning signals a shift from awarding flare sites to enforcing delivery, as the regulator seeks to ensure that successful investors move ahead with the projects.
Nigeria has more than 215 trillion cubic feet (TCF) of proven gas reserves, while its estimated total reserve base stands at about 600 TCF, according to the NUPRC.
Eyesan said the country’s gas resources could support power generation, industrialisation, exports and broader economic development if effectively utilised.
She also said the Commission had recorded progress in the implementation of Host Community Development Trusts under the Petroleum Industry Act.
According to her, 173 Host Community Development Trusts have been incorporated, 147 have been funded, more than 1,001 projects are ongoing and over 200 projects have been commissioned.
The Minister of State for Petroleum Resources (Gas), Ekpo, called for more aggressive implementation of the gas commercialisation programme to help Nigeria achieve its 2030 target of eliminating routine gas flaring.
He said the focus should be on converting gas resources into products and services while moving the country away from environmental pollution caused by gas flaring.
Nigeria’s gas flare commercialisation programme has previously been positioned as a major investment opportunity, with earlier NUPRC projections indicating that flare-gas projects could attract billions of dollars in investment while supporting LPG production and power generation.