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.
At the current exchange rate of N306.35 to a dollar, the $2 penalty translates to N612.7 per 1,00 SCF, while the $0.50 penalty translates to N153.175 per 1,000 SCF.
In the gazetted ‘Flare Gas (Prevention of Waste and Pollution) Regulations 2018,’ released, yesterday, by the Federal Ministry of Petroleum Resources, 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.
The document was presented by Mr. Justice Derefaka, Program Manager, Nigerian Gas Flare Commercialization Programme, NGFCP, Office of the Minister of State, Petroleum Resources, Federal Ministry of Petroleum Resources, MPR.
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 Department of Petroleum Resources, DPR, within 21 days following the end of each month.