P
ProfRem
Guest
Nigerian government has approved a National Gas Policy drafted by the Ministry of Petroleum Resources.
The approval was granted at the Federal Executive Council (FEC) meeting held last week in Abuja and presided by Acting President Yemi Osinbajo.
The document made available on Wednesday to newsmen showed that the intention of government was to increase the gas flaring penalty to an appropriate level sufficient to de-incentivize and eventually end the practice by 2020.
The current gas flare penalty which stands at N10/ thousand standard cubic feet (Mscf) has been described as is too low and is not acting as a disincentive, as intended.
The low penalty has made gas flaring a much cheaper option for operators compared to the alternatives of marketing or re-injection. The flaring of natural gas that is produced in association with oil is one of the most egregious environmental and energy waste practices in the Nigerian oil industry.
The main aspects of the policy covers: Governance (Legislation and Regulation), Industry Structure, Development of Gas Resources, Infrastructure, Building Gas Markets and Developing National Human Resources.
The approval was granted at the Federal Executive Council (FEC) meeting held last week in Abuja and presided by Acting President Yemi Osinbajo.
The document made available on Wednesday to newsmen showed that the intention of government was to increase the gas flaring penalty to an appropriate level sufficient to de-incentivize and eventually end the practice by 2020.
The current gas flare penalty which stands at N10/ thousand standard cubic feet (Mscf) has been described as is too low and is not acting as a disincentive, as intended.
The low penalty has made gas flaring a much cheaper option for operators compared to the alternatives of marketing or re-injection. The flaring of natural gas that is produced in association with oil is one of the most egregious environmental and energy waste practices in the Nigerian oil industry.
The main aspects of the policy covers: Governance (Legislation and Regulation), Industry Structure, Development of Gas Resources, Infrastructure, Building Gas Markets and Developing National Human Resources.