Odimmegwa Johnpeter/Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has commenced updates on the Nigerian Gas Flare Commercialisation Programme (NGFCP), warning that companies awarded flare gas sites risk losing their permits if they fail to make meaningful progress within one year.
The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, issued the warning during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in Abuja.
Eyesan explained that the commission conducts a performance assessment one year after every flare gas site is awarded to determine whether beneficiaries have made substantial progress in developing the facilities.
She said where awardees fail to meet expectations, the commission would invoke regulatory measures, including the withdrawal of their permits where necessary.
According to her, the NGFCP has continued to gain momentum despite initial resistance from some operators.
She disclosed that 43 flare gas sites were originally earmarked for allocation, with 27 already awarded while implementation activities are currently ongoing.
Eyesan also highlighted Nigeria’s vast gas endowment, noting that the country has over 215 trillion cubic feet (TCF) of proven gas reserves and an estimated total reserve base of about 600 TCF.
She said the abundant gas resources provide enormous opportunities for power generation, industrialisation, exports and broader economic growth.
On host community development, the NUPRC boss said the Petroleum Industry Act established the Host Community Development Trust framework to address longstanding concerns in oil-producing communities and ensure petroleum resources drive sustainable development.
She added that available records indicate the initiative has significantly reduced oil theft and oil spills while strengthening cooperation between operators and their host communities.
Eyesan further disclosed that the programme has recorded remarkable milestones, with 173 Host Community Development Trusts incorporated, 147 funded, over 1,001 projects currently underway and more than 200 projects already completed across host communities.
In his remarks, Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, called for a more deliberate and aggressive implementation of Nigeria’s gas commercialisation programme to ensure the country meets its 2030 target of eliminating routine gas flaring.
Ekpo said the country’s gas resources should be transformed into valuable products and services, stressing that Nigeria must shift from environmental pollution to productive utilisation of its abundant gas resources.
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