Emmanuel Aziken, Inalegwu Shaibu and Leon Usigbe
25 November 2008
CONCRETE steps to stem gas flaring by oil majors in the country were taken by the Senate yesterday as a public hearing on the Gas Flaring (Prohibition and Punishment) Bill commenced.
The Bill under consideration prescribes December 2008 deadline for the prohibition of gas flaring except on express permission of the minister. Companies that flare gas after the deadline, according to the bill, will pay $3.5 (about N400) per million standard cubic feet of gas so flared.
In another development, the government of China has sought to allay fears over the implementation of the $8.3 billion (about N971.1 billion) Kano-Lagos rail line project, saying China has requisite experience and personnel to do the job.
The Senate President, Chief David Mark, at yesterday's public hearing affirmed the lack of political will by the Presidency to stop gas flaring in the country, while the Senate yesterday summoned all the major oil producing companies to present their time-tables to stop the flaring of gas in the country.
Declaring open the public hearing on the bill yesterday, Senator Mark said: "I am told that gas flaring is the largest contributor of green house gas to the atmosphere in sub-Saharan Africa, and we know the effect. I have been to so many places in the oil producing areas and you really could pity the communities that live there because of the effect that goes on.
"Not that government has not been able to do anything about it, there has been government policies starting from Decree number 99 of 1979 which was amended again in 1985. But those decrees which are eventually more like policies have not been backed up by serious legislation.
"More importantly, I think the government has never been able to develop a strong will to ensure the implementation of this basic policies and the result of course is like any other law, the operators take the easiest line of resistance, which is to maybe pay N2, or one kobo or whatever and flaring so many feet of gas.
"More importantly, the penalty for any defaulter is too meagre for anybody to go the hard way of reducing gas flaring. Whatever it is, it is cheaper for the companies or the operators to flare gas and pay the penalty than to stop," he said.
Earlier in his remark, the Chairman of the Committee, Senator Osita Izunaso, said Nigeria currently flares 2.5 billion cubic feet of gas per day, contributing greatly to environmental problems plaguing the people of the Niger Delta.
He said: "Gas flaring has adverse effect on the health of our people. Today, it is being estimated that Nigeria flares up 2.5 billion cubic feet, and the effect of this gas flaring can best be imagined than experienced. Our environment is increasingly becoming a time bomb due to gas flaring."
Senator Izunaso speaking on the need to curb the menace of gas flaring said because of the lack of implementation of the various deadlines fixed by government for companies to stop the flaring of gas, the Senate was moved to initiate the gas flaring bill that will outlaw gas flaring by December 31, 2008.
He also added that the bill would stipulate stiffer penalties for defaulters that include a shut down order to be given by the Minister of Energy (Petroleum)as against the former fine of $4 per cubic feet of gas flared.
Meanwhile, a statement issued yesterday by the House of Representatives Committee on Land, Transport whose members are currently on an oversight visit to the headquarters of China Civil Engineering Construction Corporation (CCECC), the contractors handling the Kano-Lagos rail line project, said the Vice Chairman of China Railway Corporation (CRCC), Mr. Ding Yuancheng, had given assurance that all is well.
He said the government of China was interested in the project in Nigeria and had in fact, had high level discussions with Federal Government officials on the determination of China to implement the project.
The statement quoted Mr. Yuancheng as saying that the visit of the Nigerian parliamentary delegation to China was an opportunity for Nigeria to confirm the capacity of CCECC to successfully execute the contract saying that the company was aware that the successful implementation of the contract would raise its worldwide profile as a construction firm.
The CRCC Vice Chairman remarked that CCECC was also involved in similar projects in other countries including Tanzania-Zambia, Algeria, Botswana and Libya, Algeria and Turkey which he observed had encouraged the Federal Government of Nigeria to do business with it.
According to him, it was also because of the Chinese interest in the project and modernizing the nation's railway system that it was enthusiastic about offering soft loan to Nigeria for the quick execution of the rail line project.
Mr. Yuancheng observed that Nigerians had started to feel the impact of CCECC through the Lekki Free Trade Zone, the dualisation of Damaturu-Maiduguri highway, the Construction of the Games Village in Abuja and several road projects in Bauchi State, Cross River, Lagos and other projects for the Niger Delta Development Commission (NDDC).
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And the "former fine of $4 per cubic feet of gas flared"? Please clarify!
Is this article meant to read that there will be a $3.5 penalty for every million cubic feet of gas flared?
I have a report from 2005 (a little dated) that carbon credits will be worth $11/t CO2e.
I am not sure of the conversion but the numbers in this article do not seem to match up. Can someone help with this?