Nigeria: Regulator Threatens to Revoke Licences of Delayed Gas-Flare Projects
Nigeria is stepping up pressure on investors involved in its gas-flare commercialisation programme, warning that companies could lose their project licences if they fail to make sufficient progress.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it reviews awarded gas-flaring sites one year after approval. Projects that show inadequate progress could face regulatory action, including cancellation of their awards.
The warning is part of Nigeria’s effort to accelerate the Nigerian Gas Flare Commercialisation Programme, which seeks to capture gas that is currently burned at oil-production sites and put it to productive use.
According to the regulator, 27 of 43 gas-flaring sites identified under the programme have already been awarded to investors. Authorities want these projects to move beyond approvals and deliver actual investment, employment and emissions reductions.
Nigeria has more than 215 trillion cubic feet of proven natural-gas reserves, making gas an important part of the country’s plans for electricity generation, industrial development and energy security.
The government is also seeking to reduce routine gas flaring by 2030. Stronger enforcement could therefore become an important part of Nigeria’s strategy to generate additional economic value from its natural-gas resources while reducing environmental damage.
The latest warning sends a clear message to investors that obtaining a licence will not be enough; companies will be expected to demonstrate measurable progress in developing their projects.
