Bill seeking to prohibit gas flaring passes second reading at senate

A bill seeking to prohibit gas flaring in the country has passed second reading at the senate.

Leading a debate on the bill on Thursday, Albert Akpan, senator representing Akwa Ibom north-east and its sponsor, said gas flaring affects human life and the environment.

Citing data from the Nigerian National Petroleum Corporation (NNPC), the senator said in 2018, Nigeria lost over N217 billion in revenue as oil and gas companies flared a total of 244.84 billion standard cubic feet of gas.

“With the average price of natural gas put at $2.90 per 1,000 set as of February 16, 2017, the 244.84 billion scf flared translates to a loss of $710m or N217bn (using the official exchange rate of N305.25/ dollar),” the lawmaker said.

“It appears that the euphoria of oil discovery and commencement of Production in 1958 blinded the eyes of Nigerians as there was no provision to handle produced gas in association with crude oil. Government, neither stipulated any laws nor guidance during the nascent period of our oil production history.

“It is pertinent to note that gas re-injection is not applicable in every scenario as the decision to re-inject or store gas follows extensive studies of the field or reservoir systems to determine the most appropriate development mechanism for optimum recovery of hydrocarbon.”

The senator said the penalty of N10 per 1,000 scf is too low.

“This bill seeks to increase the gas flaring penalty to an appropriate and commensurate level sufficient to de- incentivise the practice of gas flaring, whilst introducing other market measures to encourage efficient gas utilisation,” he said.

“The bill equally makes it mandatory for operators to submit gas utilisation plan within 90 days of the commencement of the act for effective monitoring and makes provision for a two year periodic review of the minister’s powers granted under the Act.”

On his part, Jibrin Barau, senator representing Kano central, the bill would address the gas flaring problem when it is finally enacted.

“This bill is very important because to me it has full benefits when passed into law. Gas flaring is something bad for the environment,” he said.

“This bill when passed will address that and provide heavier penalties for those who contravene the law.”

The bill passed second reading after it was put to a voice vote by Senate President Ahmad Lawan.