Investors Still Studying Viability of Gas Flare Commercialisation Initiative, Says NUPRC
Emmanuel Addeh
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that it is working closely with investors to ensure the success of the Nigerian Gas Flare Commercialisation Programme (NGFCP) to derive more revenue for the federation account and end the pollution of the environment.
The programme was launched by the federal government on December 13, 2016 and was designed as a strategy to implement elimination of gas flares with potentially enormous multiplier and development outcomes for Nigeria.
The objective of the NGFCP is to eliminate gas flaring through technically and commercially sustainable gas utilisation projects developed by competent third party investors and attract investment in economically viable gas flare capture projects whilst permanently addressing a 60-year environmental problem in Nigeria.
Speaking in Abuja during the first six-month assessment of his assumption of office, Chief Executive of the NUPRC, Mr Gbenga Komolafe, stated that the gas commercialisation plan had been in the front burner since he took over at the organisation.
He stated that apart from the fact that the initiative will help in enhancing federation revenue, it will equally help in curbing pollution or emission of gases which he said gives the scheme a double advantage.
“So, at the moment the commission is collaborating with all multilateral agencies. Recently we received a department of the US, which is the trade department, they were here and we are collaborating with them in a manner that we will execute that programme and the nation will derive optimal advantage.
“We also want to take advantage of economics of scale because it actually involves a number of actors. The investors that want to come into it are concerned about the viability of it. So, on assumption of office, we inherited a model in which the programme was to be executed.”
Also speaking on the take-off of the host community fund, he noted that the implementation of the fund had been given a place in the Petroleum Industry Act (PIA), stressing that the regulations were being finalised with the stakeholder engagements recently held. “The implementation will begin in full swing once the regulations become operational,” he added.
