FG warns oil companies over non-compliance with gas flare policy


…says FG to establish gas filling stations nationwide

The Minister of State for Peteoleum Resources, Ibe Kachikwu has warned oil companies operating in the country to comply with the federal government’s decision to end gas flaring by 2020 or have their licenses withdrawn. Mr. Kachikwu said this while fielding questions from journlists present at the international press conference on the journey so far and the next line of action on the Nigerian gas flare conversation programme on Thursday in Abuja.According to the Minister, it will no longer “just be about penalties but licenses”.

He noted that despite the federal government commitment to end the flare of gas oil companies seem not to show willingness to implement government’s policy. Kachikwu said that when the NGFCP becomes operational is expected to have a potential GDP impact of $1 billion per annum.He lamented that despite a 70 per cent decline in flaring over the past decade as a result of NNPC and their JV partners efforts, Nigeria still flared 324back of gas in 2017, exceeding the meagre -800mmscfd utilised for power generation and -450mmscfd utilised in domestic market.NGFCP, the minister said, will “drastically reduce gas flaring by harnessing flared gases to stimulate economic growth, drive investment and provide jobs in the Niger Delta through the utilisation of widely available innovative technologies.”

In his presentation, Chairman Ministerial Steering Committee NGFCP, Engr. Rabbit Suleiman said that about $3.5 billion worth of investments by third party investors is required to achieve gas flare commercialisation by 2020.Engr. Suleiman said the project would harness gas from the various flare points would reduce gas volume by 80 per cent just as he added that the project will also achieve thee gas flare out commitment through technically and commercially suatainable gas utilisation projects developed by competent third party investors. He added that the NGFCP will accelerate the reduction of the environment and social impact caused by flaring of natural gas.”Once operational, project ts launched under the NCFCP would reduce Nigeria’s emission by -13 million tons of Co2 per year. Presently, there are over 178 flare sites which collectively flare about 330bscf of gas produced annually.In a related development, the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, says the federal government was working assiduously to ensure installation of gas filling plants in each of the 774 Local Government Areas in the country.

Kachikwu, who disclosed this in his keynote address at the commissioning of the Nigerian Army Welfare Limited Guaranty Gas plant at Mambilla Barracks, Abuja, said: “We are working with the Liquified Petroleum Gas (LPG) companies producing cylinders, with very strong presidentially backed incentives to be enable them to produce LPG cylinders in this country.“About four of them are getting facilities from the Nigerian Content Development Monitoring Board (NCDMB) from the more than 200 million facilities we have.“They are getting import exemption for materials to be assembled for the plants.“Once you do that, you also expect them to assemble them around the more than 700 local government areas in the country.“We are targeting that. In the next one or two years every local government area will have gas filling plants.”He added that cylinders produced by the companies would be distributed free to consumers as part of efforts at encouraging local consumption in the country.

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