FLARE GAS (PREVENTION OF WASTE AND POLLUTION) REGULATIONS, 2018

Regulations establish a framework for monetizing flared gas in oil operations. They target gas operators and third-party investors to prevent waste and pollution. This ends routine flaring and promotes environmental protection.

What Is This Policy?

Regulations that establish a market-based framework for monetising gas currently being flared at oil and gas facilities in Nigeria, allowing third parties to purchase and utilise flare gas that would otherwise be wasted.

Who Does It Target?

Oil and gas operators with gas flaring facilities Third-party buyers and gas utilisation investors Department of Petroleum Resources (now NUPRC) Communities affected by gas flaring in the Niger Delta

What Does It Aim to Achieve?

End routine gas flaring in Nigeria, monetise stranded gas resources, reduce environmental pollution from flaring, and generate economic value from currently wasted natural gas.

Key Features

Flare Gas Purchase Rights: Grants third parties the right to negotiate access to flare gas from operators, incentivising utilisation over flaring. Operator Obligations: Requires operators to cooperate with approved third-party buyers seeking access to flare gas. Permit System: Establishes a permit system administered by the DPR (now NUPRC) for flare gas utilisation projects. Zero Routine Flaring Target: Aligns with the World Bank Zero Routine Flaring by 2030 initiative.

Current Status

Rollout Stage: Active - permits being issued; several flare gas utilisation projects commissioned Coverage: All oil and gas production facilities in Nigeria Beneficiaries: Gas utilisation investors; Niger Delta communities; climate and environment Funding: Private sector investment in gas utilisation projects

How to Access

Third-party buyers: apply for flare gas purchase permit from NUPRC Operators: provide access to approved permit holders Projects must meet technical and environmental requirements Application method: Apply for flare gas purchase permits at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Important Terms

Operators who refuse access to approved buyers face regulatory sanctions Permit holders must commence utilisation within prescribed timelines Environmental impact assessment is required for utilisation projects

Impact & Metrics

Nigeria's gas flaring volumes have declined progressively; several flare gas-to-power and CNG projects now operational.

Official Resources

Website: https://www.nuprc.gov.ng Contact: Nigerian Upstream Petroleum Regulatory Commission (NUPRC)

Legal Framework

The Flare Gas (Prevention of Waste and Pollution) Regulations 2018 are issued under the Petroleum Industry Act 2021 (and previously the Petroleum Act) and the Associated Gas Re-injection Act 1979. They operate alongside the Environmental Impact Assessment Act 1992 and the National Environmental Standards and Regulations Enforcement Agency Act 2007. The Regulations align with the World Bank Zero Routine Flaring by 2030 Initiative, Nigeria's Paris Agreement NDCs on gas flaring elimination, and UNEP standards on gas flaring.