Nigeria’s regulator may revoke gas flare utilization permits
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned investors that it may revoke permits granted to them under the gas flare commercialization program if they fail to demonstrate substantial progress in utilizing the gas. Premium Times Nigeria reports.
The commission’s Chief Executive, Oritsemeyiwa Eyesan, said this during a working visit to Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja. According to her, one year after a permit is granted, the commission assesses whether the investor has made significant progress. If there is no such progress, the regulator may take appropriate measures, including revoking the permit.
27 sites transferred to investors
Under the Nigerian Gas Flare Commercialisation Programme, 43 gas flare sites were initially identified for allocation to investors. Permits for 27 of them have already been granted, and work on implementing the projects is ongoing. Eyesan said the program is progressing despite initial resistance from some oil and gas operators.
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The Nigerian federal government launched the program in 2016. Its goal is to end routine gas flaring at oil fields by involving third-party investors in the commercial use of gas that would otherwise be burned in flares.
Target for 2030
According to the NUPRC, Nigeria has more than 215 trillion cubic feet of proven natural gas reserves, while its total resource base is estimated at around 600 trillion cubic feet. The commission believes that effective commercialization of these resources could support electricity generation, industrialization, exports, and a reduction in pollution from gas flaring.
Ekperikpe Ekpo called for focused and active implementation of the gas commercialization program so that Nigeria can achieve its goal of eliminating routine gas flaring by 2030.
