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FG issues warning to gas producers amid gas flare commercialisation

Nigerian Upstream Petroleum Regulatory Commission Cautions Against Obstructing Successful Awardees in Flare Gas Utilization

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In a stern warning to gas producers, the Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has cautioned against discouraging successful awardees in the Gas Flare Commercialisation Programme from proceeding with their projects. The caution was issued during a meeting in Abuja that brought together operators in the upstream petroleum industry and the Chief Executive of NUPRC, Gbenga Komolafe.

The NUPRC had, in September 2023, issued letters of award to 42 individual companies for all 49 flare sites on offer. Addressing concerns related to the reduction in volumes of flare profiles, Komolafe emphasized that the commission would not tolerate any attempts by gas producers to dissuade awardees from embarking on their projects.

During the meeting, Komolafe expressed surprise at feedback from awardees claiming that forecasted gas volumes might not be available, stating, “The commission will not accept any ploy to dissuade the awardees from embarking on their project development and may activate the relevant provisions of the Act and regulations to address willful misrepresentation of information and data.”

While acknowledging challenges faced by awardees, including assurance of flare gas supply, access to land, community support, delayed execution of agreements, and unwillingness to sign connection agreements, Komolafe urged operators to collaborate and provide robust support for the Gas Flare Commercialisation Programme. He emphasized the program’s significance in eliminating wasteful gas flaring, addressing environmental concerns, and supporting Nigeria’s transition efforts in combating emissions.

“As a nation, the NGFCP represents one of our key climate actions to combat emissions and support Nigeria’s transition endeavors,” Komolafe stated, underscoring the program’s role in achieving environmental sustainability and reducing the negative social and health impacts of gas flaring.

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