Pecohub The Federal Government has warned that companies awarded access to Nigeria’s flare gas resources must demonstrate tangible progress in commercialising the gas or risk losing their awards, as it steps up efforts to eliminate routine gas flaring and attract billions of dollars in fresh investment into the sector.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed that of the 42 companies awarded contracts under the Nigerian Gas Flare Commercialisation Programme (NGFCP), about 20 had made significant progress, leaving roughly 22, or 52.4 per cent, yet to reach that level.
Ekpo said the assessment was based on the latest report he requested from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) regarding the awardees’ activities.
The minister said some investors had encountered resistance in gaining access to flare sites, but insisted that companies could either develop the technology required to capture flared gas or allow qualified investors with the capacity to commercialise it.
The development comes weeks after NUPRC warned that flare gas awardees could lose their permits if they failed to utilise the sites. The commission said it evaluates awardees one year after an award to determine whether considerable progress has been made and could revoke awards where progress is insufficient.
