KEY POINTS
- NUPRC aims to capture 250 million cubic feet of gas flares daily to cut emissions.
- NUPRC emphasizes balancing energy security, affordability, and sustainability.
- NUPRC introduces frameworks to boost investment, manage assets, and ensure crude supply to refineries.
The Nigerian Upstream Petroleum Regulatory Authority (NUPRC) has introduced a plan to capture up to 250 million cubic feet of gas flares daily in an effort to reduce emissions across Nigeria’s upstream petroleum sector.
This initiative, disclosed by NUPRC Chief Executive Gbenga Komolafe at the 42nd Annual International Conference of the Nigerian Association of Petroleum Explorationists in Lagos, aligns with Nigeria’s commitment to decarbonization and environmental responsibility. “Our goal through the Nigerian Gas Flare Commercialisation Programme is to capture and repurpose flared gas, bringing Nigeria closer to its sustainability targets,” Komolafe stated.
Between 2012 and 2022, Nigeria flared about 80 billion standard cubic meters of gas, valued at roughly N9 trillion. NUPRC’s new focus on capturing this gas aims not only to reduce environmental harm but also to improve the country’s energy resource management.
Energy security and sustainability emphasized by NUPRC
Komolafe highlighted the importance of tackling Nigeria’s energy “trilemma”—balancing energy security, affordability, and sustainability. He acknowledged the significant role technological advancements have played in stabilizing Nigeria’s energy sector. The government’s goals, he said, include achieving an oil production target of 2 million barrels per day by December, up from the current 1.8 million barrels. This target aligns with Project 1 MMBOPD, aimed at enhancing energy security and independence for Nigeria.
In addition, Komolafe emphasized the government’s commitment to creating an investor-friendly environment in line with President Bola Tinubu’s support for the oil and gas sector. Nigeria’s new Petroleum Industry Act is seen as a vital component in this strategy, with NUPRC working to enhance transparency and regulatory clarity to attract investment.
Regulatory measures to boost transparency and investment
To further its goals, NUPRC has implemented several regulatory frameworks. These include the issuance of 25 priority regulations and the Upstream Asset Divestment and Exit Framework, which helps manage asset transfers and attracts new investment. NUPRC is also working on a licensing round for 31 oil and gas blocks to expand Nigeria’s reserves.
Additionally, the authority is enforcing the Domestic Crude Supply Obligation, ensuring that refineries have stable access to crude oil. Advanced metering systems are also being implemented to monitor production and reduce theft. NUPRC’s social responsibility initiatives, including the creation of 137 Host Community Development Trusts, aim to foster positive relationships between oil companies and local communities, encouraging peaceful coexistence and cooperation.
Komolafe expressed optimism about Nigeria’s potential to meet its energy goals and encouraged industry professionals to support NUPRC’s sustainability efforts for the future.
