Gas commercialisation falters as 22 of 42 awardees struggle to develop flare sites - The Guardian Nigeria News
FG banks on $3.5b investment, threatens action over gas flaring, methane emissions
The Federal Government has warned that companies awarded access to Nigeria’s flare gas resources must demonstrate tangible progress in commercialising the gas or risk losing their awards, as it steps up efforts to eliminate routine gas flaring and attract billions of dollars in fresh investment into the sector.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed that of the 42 companies awarded contracts under the Nigerian Gas Flare Commercialisation Programme (NGFCP), about 20 had made significant progress, leaving roughly 22, or 52.4 per cent, yet to reach that level.
Ekpo said the assessment was based on the latest report he requested from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) regarding the awardees’ activities.
The minister said some investors had encountered resistance in gaining access to flare sites, but insisted that companies could either develop the technology required to capture flared gas or allow qualified investors with the capacity to commercialise it.
The development comes weeks after NUPRC warned that flare gas awardees could lose their permits if they failed to utilise the sites. The commission said it evaluates awardees one year after an award to determine whether considerable progress has been made and could revoke awards where progress is insufficient.
The Guardian earlier reported that over N521.87 billion was collected in gas-flaring penalties in 2025, a development that failed to end routine flaring.
Between January 2025 and June 2026, Nigeria flared about 301.6 billion cubic feet of gas, with an estimated market value of nearly $888 million.
Ekpo said the government remained committed to ending routine gas flaring by 2030, arguing that the policy was not only about reducing methane emissions but also recovering significant economic value being lost through the burning of associated gas.
“Ending gas flaring also means recovering money for our dear country, Nigeria,” he said.
The minister said Nigeria’s gas reserves had risen from 208.83 trillion cubic feet (tcf) in 2023 to 215.19tcf as of January 2026, while average gas production increased from about 6.8 billion cubic feet per day (bcf/d) when he assumed office to 7.5 bcf/d.
Domestic gas supply, he added, had crossed 2 bcf/d, with the Federal Government targeting 10 bcf/d production by 2027 and 12 bcf/d by 2030.
The administration is also banking on new investment and infrastructure to support the expansion.
