For the Nigerian energy industry, one issue stands out as an opportunity and a challenge – gas flaring. The billowing flames and plumes of smoke from our gas flares have long reflected the nation’s abundant energy resources on the one hand and the environmental concerns on the other. To address these concerns posed by the apparent waste, the Nigerian government put in place measures, including regulations, to curb this practice and reduce it to the barest minimum.
Riding on the back of the robust provisions of the Petroleum Industry Act 2021, the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority recently issued the Gas Flaring, Venting and Methane Emissions (Prevention of Waste and Pollution) Regulations, and the Midstream Gas Flare Regulations respectively, aimed at reducing and ultimately eliminating gas flaring in the midstream and upstream sectors, and promoting responsible gas utilization and environmental sustainability. The regulations provide a regime for flare gas commercialization, to implement the objectives of the Nigerian Gas Flare Commercialization Programme and ultimately deliver on the government’s commitment to a national flare-out target by the year 2025.
In this newsletter, we have highlighted and shared our thoughts on key provisions of the regulations, the rights and statutory obligations of licensees or leaseholders, and the penalties for non-compliance with these regulations. We hope you find it an insightful read.