The multinational oil firms, such as Shell Petroleum Development Company (SPDC), Chevron Nigeria Limited, Mobil Producing Nigeria Unlimited (MPN), Nigeria Agip Oil Company (NAOC) and Elf Petroleum Nigeria Limited (EPNL) had shown doubt over the possibility of achieving zero flare out by the end of 2008, notwithstanding the threat by the Department of Petroleum Resources (DPR) to sanction defaulters.
Although the original December 31, 2008 flare-out target could not be achieved, the flare out rate was said to have been decreased by about 45%.
Chairman, House of Representatives Committee on Gas, Igo Aguma said the many infrastructure needed to transmit linked gas from the oil fields to the market centers, instead of flaring it, is a major challenge, which will need a minimum period of two years to conclude successfully.
We are all aware that there is currently a gas utilization programme ongoing to support the power industry. We also know the capacity of the industry to receive the gas that is being flared. So, projects need to go on before we can have a zero flare-out date, Aguma said.
Aguma informed that attainment of the new flare-out date is subject to accessibility of finances for investment in the industry, pointing out that the NNPC is a major stakeholder in each of the gas utilization projects needed to achieve the flare-out deadline.
If NNPC that is trusted with the management of JV operations on behalf of the Federal Government has agreed that adequate time is needed to raise fund required to complete major infrastructure and gas utilization projects, without pre-empting the final decision of the House of Representatives on the gas re-injection bill which we have just concluded at the public hearing as the chairman of the Gas Committee, there is already a consensus about 2011 as the possible date feasible for ending gas flaring in Nigeria, Aguma said.
If there is commitment by the Federal Government in terms of providing adequate fund to finance its equity in these projects, we can then look at 2013 date as the possible date, Aguma said. However, it will be a waste of resources to talk of deadline without finding an immediate solution to the activities of Niger Delta youths disrupting execution of gas projects by our contractors.
