The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reaffirmed Nigeria's commitment to ending routine gas flaring by 2030. Chief Executive Oritsemeyiwa Eyesan stated that the country is pursuing stricter penalties and commercialization of gas currently being burned at oil production sites. This pledge comes under scrutiny due to persistent flaring at oil facilities and gaps in regulatory enforcement and emissions monitoring.
According to Eyesan, gas flaring has declined from 90% of production to approximately 7%, with about 500 million standard cubic feet of gas still flared daily. The NUPRC launched the Nigerian Gas Flare Commercialisation Programme in 2021, auctioning 42 flare sites to third-party investors for projects such as mini-liquefied natural gas (LNG) plants and liquefied petroleum gas (LPG) production facilities.
Despite the decline in gas flaring, concerns remain about Nigeria's regulatory framework and its effective enforcement. A Premium Times investigation found major gaps in implementing the Petroleum Industry Act (PIA) and regulations governing gas flaring, venting, and methane emissions. The investigation revealed regulatory delays, weak enforcement, and deficiencies in methane measurement.
The NUPRC has acknowledged technical capacity limitations and gaps in measuring, reporting, and verifying methane emissions. The regulator directed oil and gas operators to improve emissions reporting, including a shift to more accurate, measurement-based monitoring systems. However, several operators continue to flare gas despite legal obligations to reduce emissions.
A recent investigation by Premium Times found that TotalEnergies' claim of ending routine gas flaring in Nigeria was under scrutiny. Satellite data indicated that flare activity at TotalEnergies' OML 58 and OML 130 assets had not significantly reduced. The findings raised questions about how routine flaring is classified and whether regulators can independently verify companies' claims.
Eyesan attributed the reduction in gas flaring to stricter penalties and efforts to develop commercial uses for gas. The gas-flaring penalty is standardized at $2 per thousand standard cubic feet, with additional penalties for operators exceeding approved thresholds. Nigeria has proven gas reserves of 215.19 trillion cubic feet, giving the country an estimated reserve life of 85 years.
Industry stakeholders emphasize the need for effective commercialization arrangements and measurable reductions in emissions. Ainojie Irune, managing director of Oando Energy Resources Nigeria Ltd., stated that Africa's gas industry would require about $1 trillion in investment by 2050. He highlighted the need to focus on delivering reliable supplies and converting resources into economic value.
Key points
- Nigeria's regulator reaffirms commitment to end routine gas flaring by 2030.
- Concerns remain about Nigeria's regulatory framework and its effective enforcement.
- The country has proven gas reserves of 215.19 trillion cubic feet, with an estimated reserve life of 85 years.
