The Federal Government said on Sunday that it was conducting a study to identify eligible gas flare sites for auction and that it would award flare sites through a competitive bid procedure to technically competent enterprises.
It said that a 12-member Flare Gas Commercialisation Programme Team was in charge of driving the process and directing the Flare Gas Commercialisation Programme towards its aim to eliminate gas flaring by 2025.
Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), indicated in a statement he signed that monetising gas resources is a constructive step towards ensuring energy security, particularly during the global energy transition phase. He noted that as a nation, Nigeria must ensure that it harnessed all available gas resources for value creation.
“This process has become crucial given the policy direction of the Federal Government to ensure all gas resources are developed for national development,” Komolafe stated.
He added, “The commission is currently carrying out a study in conjunction with external technical resources to identify suitable flare sites for the auction process.
“It was for the purpose that the committee of staff of the commission was inaugurated to drive the process and coordinate implementation of the programme.”
Gas flaring in the oil and gas sector has remained a problem that must be addressed due to its negative impact on the environment and people. Natural gas waste not only has substantial health/environmental repercussions, but it is also a huge resource waste and value degradation for the country.
Against this backdrop, the Federal Government declared the period 2021 to 2030 as the “Decade of Gas”, a period within which the nation intends to shift focus from oil-centred exploitation to gas-driven industrial development.
Despite the World Bank’s target year of 2030 to cease gas flaring, Nigeria has set a country deadline of 2025. The Federal Government launched the Nigerian Gas Flare Commercialisation Programme in 2016 to put a stop to natural gas flaring by oil firms operating in the nation.