Chukwuwinke, S. M.

Abstract

This article attempts a review of the National Gas Policy on inadequate gas processing infrastructures inter-alia, and the responses of multi-national oil companies (MOCs) to gas flare reduction policies in Nigeria. The policy on natural gas (contained in the National Energy Policy, NEP, 2003) states that, “the nation shall put in place necessary infrastructure and incentives to encourage indigenous and foreign companies to invest in the industry. Furthermore, the policy provides that, the nation shall put in place necessary infrastructure and incentives to ensure adequate geographical coverage of the gas transmission and distribution network…” (NEP 2003:14). Yet, Nigeria lacks these critical infrastructures. The consequences of this are as follows: indigenous and foreign companies are reluctant to invest in the gas industry, and therefore, do not feel any sense of remorse when they regularly engage in gas flaring. Furthermore, adequate geographical coverage of the gas transmission and distribution is yet to be achieved. The article adopted an explorative approach; as such, data collection was entirely from secondary sources, including the internet, and analysed using content analysis. The article interrogates reasons behind the non-provision of these gas infrastructures. It examines the benefits derivable from putting the infrastructure in place as well as the shortfalls inherent in their absence and how this lack of gas infrastructure has promoted contained flaring activities. The study findings revealed that multi-national oil companies (MOCs)have taken advantage of the situation to continue the flaring of natural gas and decline to support the policies for gas flare reduction. The paper thus concluded that, the provision of gas processing infrastructure would go a long way in helping to check gas flaring activities in Nigeria.

   

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Published: 2024

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