Gas Flaring, Venting and Methane Emissions (Prevention of Waste and Pollution) Regulations, 2023

Country / jurisdiction: Nigeria · Year: 2023 · Status: In force · Level: National · Type: Voluntary

These Regulations have been enacted under the Petroleum Industry Act, 2021 and seek to reduce the environmental and social impact of flaring and venting of natural gas and fugitive methane emissions and create social and economic benefits from gas flaring and venting. They apply to all licensees, lessees and producers of gas in upstream petroleum operations.

Rights over flare gas : The Regulations grant the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) the right to take all gas at a flare point, free of charge and without payment of royalty. The NUPRC may award permits to applicants selected through a competitive bid process to access the disposed gas for commercialisation or utilisation.

Monetisation : Producers of gas are required to submit a Flare Elimination and Monetisation Plan for NUPRC’s approval, setting out the methodology and implementation plan for the elimination and monetisation of gas flaring from a licence or lease area. After its approval, producers are to enter into a Milestone Development Agreement with the NUPRC for its implementation.

Permitted gas flaring : Except in the case of emergencies, the Regulations permit gas flaring within a threshold approved by the NUPRC and upon payment of a flaring fee.

Monitoring and reporting : Producers and permit holders are required to maintain daily records of gas flaring, venting and fugitive methane emissions. In addition, permit holders are responsible for the provision and installation of metering equipment used for measuring disposed gas pursuant to their permit. The Regulations also stipulate reporting requirements for data, including natural gas wasted by deliberate venting, incomplete combustion, and fugitive emissions. NUPRC shall publish an annual report of the submissions by regulated entities on its website with data on each producer made available.

Official source: https://www.nuprc.gov.ng/wp-content/uploads/2023/07/GAS-FLARING-REGULATIONS.pdf