NUPRC threatens sanctions over unutilised gas flare sites

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Warns firms of possible award revocation

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By Obas Esiedesa, Abuja

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ABUJA — The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has threatened to sanction companies awarded flare gas sites under the Nigerian Gas Flare Commercialisation Programme, NGFCP, if they fail to make significant progress towards developing and utilising the sites.

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The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, disclosed this in Abuja during a working visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.

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A statement by the Commission’s Head of Corporate Communications and Media, Eniola Akinkuotu, said Eyesan presented an update on the implementation of the NGFCP during the visit.

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She explained that the Commission evaluates the performance of awardees one year after an award is granted to determine whether sufficient progress has been made towards developing and utilising the flare gas sites.

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“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Eyesan said.

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“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary,” she added.

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Eyesan said the NGFCP had continued to record progress despite initial resistance from some operators.

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According to her, 43 flare gas sites were initially identified for award under the programme, with 27 sites successfully awarded and implementation efforts ongoing.

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The NGFCP is aimed at commercialising gas currently being flared by oil and gas operators, reducing routine gas flaring and creating economic value from the country’s gas resources.

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Eyesan said Nigeria currently had more than 215 trillion cubic feet, TCF, of proven natural gas reserves, with an estimated total reserve base of about 600 TCF.

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She said the country’s abundant gas resources provided a strong foundation for power generation, industrialisation, exports and broader economic development.

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The NUPRC boss also highlighted progress in implementing the Host Community Development Trust framework established under the Petroleum Industry Act, PIA.

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She said the framework was designed to address longstanding concerns in oil-producing communities and ensure that petroleum resources contributed to sustainable development.

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According to Eyesan, available data showed that the implementation of the trusts had contributed to reductions in oil theft and oil spills, while improving relationships between oil and gas operators and host communities.

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“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.

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In his remarks, Ekpo called for deliberate and aggressive implementation of the country’s gas commercialisation programme to enable Nigeria meet its 2030 target of ending routine gas flaring.

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The minister said the country could no longer afford to waste its gas resources through flaring, urging stakeholders to convert the resources into products and services capable of driving economic development.

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“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 said.

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