Gas producers have been warned by the Federal Government to stop frustrating awardees in the gas flare commercialisation programme from embarking on the project.
According to The PUNCH, Federal Government 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 said that the commission would not tolerate any plan by gas producers to chicken out 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.
Komolafe Who spoke on issues around the reduction in volumes of flare profile 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.
“The commission will not accept any ploy to dissuade the awardees from embarking on their project development and may activate the relevant provisions of the Act and regulations to address willful misrepresentation of information and data.”
He identified other challenges that had been registered by awardees to 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.
He called on the operators to collaborate 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.
