Companies selected to develop sites under Nigeria’s Gas Flare Commercialisation Programme could have their awards withdrawn if they fail to put them to productive use, the Nigerian Upstream Petroleum Regulatory Commission has warned.
Gas flare awards face review
Oritsemeyiwa Eyesan, the commission’s chief executive, issued the warning in Abuja during a working visit to Ekperikpe Ekpo, the minister of state for petroleum resources responsible for gas.
The NUPRC will review every award 12 months after it is granted to establish whether the recipient has made meaningful progress. Eyesan said inadequate performance could trigger regulatory measures, including cancellation of the award where warranted.
She said the programme had continued to advance despite early opposition from some industry participants. Of the 43 gas-flaring locations identified for the initiative, 27 have now been allocated, while work to implement the awards is continuing.
Gas reserves and host communities
Nigeria has more than 215 trillion cubic feet of proved natural gas reserves, Eyesan said, while the country’s broader estimated resource base stands at roughly 600 trillion cubic feet. The scale of those resources could support higher electricity generation, industrial expansion and export growth.
Eyesan also highlighted progress under the Petroleum Industry Act’s Host Community Development Trust system. She said the framework had helped curb crude theft and oil spills and had improved cooperation between producers and the communities where they operate.
A total of 173 Host Community Development Trusts have been incorporated, with 147 receiving funding. More than 1,001 projects are in progress, while over 200 have been completed and formally commissioned.
Government presses for faster execution
Ekpo urged the industry and regulators to accelerate gas-commercialisation projects as Nigeria works toward its goal of ending routine gas flaring by 2030.
“The country must shift from environmental damage to the productive use of its natural resources,” the minister said.
