Nigerian Senate Passes Gas Flaring Bill
The Nigerian senate has passed a bill penalising gas flaring and other malpractices in the oil and gas sector, sponsored by the chair of the gas committee, Bassey Albert Akpan. "The approval of the long-awaited legislation on gas flaring after 40 years is one of the best parting gifts the eighth Senate could possibly offer Nigerians at this time," Akpan said.
The senate has now sent the bill to the lower house for debating and then it goes to the president, Muhammadu Buhari. He will have 30 days from the beginning of his second tenure next month to assent to the bill.
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The bill states that natural gas is not to be flared or vented in any oil and gas production operation, block or field, onshore or offshore, or at any gas facility starting up after the enactment of the bill.
It also states that any licensee who supplies inaccurate data to the Department of Petroleum Resources (DPR) or to any other lawful authority will be liable, upon conviction to a fine of naira 10mn ($28,000) or be committed to prison for a term of six months or both.
According to Nigeria's Gas Flare Tracker which was recently implemented, gas valued at $396.3mn was flared in Delta State, one of the major host communities for operating licensees, between January 2018 and January 2019.
Once enacted, every operator who wants to establish a gas facility must submit to the government a field development programme that covers the issues of gas flaring, venting and the environment.
The government may refuse authorization where the project has a significant negative environmental impact; or the government may impose conditions to mitigate the adverse effect in the field development authorisation. The licensee cannot flare or vent gas for more than 48 continuous hours withouth government approval.
Last August, the Flare Gas Regulations 2018 were approved by the Buhari. Under the regulation, companies are liable for a fine of naira 720 (about $2)/'000 ft³ flared.