The Federal Government has warned gas producers to stop discouraging awardees in the gas flare commercialisation programme from embarking on the project.
It gave the warning at a meeting that had operators in the upstream petroleum industry and the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, in Abuja on Tuesday.
In his address at the post-award engagement between the NUPRC and producers operating assets under the Nigerian Gas Flare Commercialisation Programme, Komolafe stated that the commission would not accept any ploy by gas producers to dissuade successful awardees from embarking on the project.
The Federal Government, through the NUPRC, had issued relevant letters of award to 42 individual companies for all 49 flare sites on offer in September 2023.
Commenting on issues around the reduction in volumes of flare profile, Komolafe said, “Recall that the flare volumes on offer arose from several technical sessions with your respective teams based on historical performance and activity-based projections.
“It is therefore surprising to receive feedback from awardees on claims by some producers that the forecast gas volumes may not be available only a few months after.
Commenting on issues around the reduction in volumes of flare profile, Komolafe said, “Recall that the flare volumes on offer arose from several technical sessions with your respective teams based on historical performance and activity-based projections.
“It is therefore surprising to receive feedback from awardees on claims by some producers that the forecast gas volumes may not be available only a few months after.
He, however, observed that other challenges that had been registered by awardees include assurance of flare gas supply. access to land and community support, delayed execution of agreements due to extended due diligence
process and unwillingness to sign connection agreements with awardees.
Komolafe urged the operators to join hands and deepen the support for the programme towards the issuance of permits and execution of projects.
“Recall that at the inaugural session of this producers forum earlier in the year, which I chaired, we underscored the significance of the NGFCP to achieve the elimination of the unwholesome practice of wasteful gas flaring with its attendant deleterious social, health and environmental impacts.
“Moreover, as a nation the NGFCP represents one of our key climate actions to combat emissions and support Nigeria’s transition endeavors,” he stated.
END.