Nigeria Increases Penalty For Gas Flaring To $2/1000scf From N10/1,000scf

The Federal Government has increased the penalty for gas flaring to $2 per 1,000 standard cubic feet of gas (SCF), from N10 per 1,000 SCF of the commodity flared. This translates to N612.7 per 1,000 SCF at the current ex- change rate of N306.35/$.
This was contained in the just gazetted ‘Flare Gas (Prevention of Waste and Pollution) Regulations 2018. The Federal Government also stipulated a fine of N50, 000 or a six months jail term or both, for anyone who provides inaccurate flare data.
But industry analysts say, the penalty and fine is not enough to deter perpetrators from continuing with crime.
The new regulation further requires gas producers to maintain daily log of flaring and venting of natural gas produced in association with crude oil and submit same to the Depart- ment of Petroleum Resources, DPR, within 21 days following the end of each month
This is in line with the re-invigoration of the flare penalty through the 2016 Nigeria Gas Flare Commercialization Programme and demonstrates the NNPC’s commitment to achieve zero flare by 2020. The NNPC has also em- barked on an aggressive expansion of the gas infrastructure network aimed at creating access to the market.

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