Houston, Texas — The Federal Government is considering December 31, 2011 as the new deadline for flaring gas associated with oil exploration in the country.

Chairman, House of Representatives Committee on Gas, Hon. Igo Aguma, who confirmed this in an interview with journalists in Houston, Texas, United States, yesterday said the new date was fixed at the instance of the Nigerian National Petroleum Corporation (NNPC).

He said sequel to the request, the House Committee is now considering December 2011 as the new date to enable the corporation, which is managing the Joint Venture (JV) fields on behalf of the Federal Government, to address factors militating against the attainment of zero flare by oil and gas operators.

The multinational oil companies, such as Shell Petroleum Development Company (SPDC), Chevron Nigeria Limited, Mobil Producing Nigeria Unlimited (MPN), Nigeria Agip Oil Company (NAOC) and Elf Petroleum Nigeria Limited (EPNL) had expressed doubt over the possibility of achieving zero flare out by the end of last year, notwithstanding the threat by the Department of Petroleum Resources (DPR) to sanction defaulters.

Although the initial December 31, 2008 flare-out target could not be achieved, the flare out rate was said to have been reduced by about 45 per cent.

However, Aguma said the various infrastructure needed to transmit associated gas from the oil fields to the market centres - instead of flaring it - is a major challenge, which will require a minimum period of two years to complete successfully.

"We are all aware that there is currently a gas utilisation programme ongoing to support the power industry. We also know the capacity of the industry to receive the gas that is being flared. So, projects need to go on before we can have a zero flare-out date," he said.

Aguma noted that attainment of the new flare-out date is subject to availability of funds for investment in the industry, pointing out that the NNPC is a major stakeholder in each of the gas utilisation projects needed to achieve the flare-out deadline.

"If NNPC that is trusted with the management of JV operations on behalf of the Federal Government has agreed that adequate time is needed to raise fund required to complete major infrastructure and gas utilisation projects, without pre-empting the final decision of the House of Representatives on the gas re-injection bill which we have just concluded at the public hearing as the chairman of the Gas Committee, there is already a consensus about 2011 as the possible date feasible for ending gas flaring in Nigeria," he said.

Some industry operators who spoke on the new gas flaring date, yesterday expressed doubt over the possibility to attain the target in view of the setbacks on projects designed for bringing an end to gas flaring.

"If there is commitment by the Federal Government in terms of providing adequate fund to finance its equity in these projects, we can then look at 2013 date as the possible date," he said. "However, it will be a waste of resources to talk of deadline without finding an immediate solution to the activities of Niger Delta youths disrupting execution of gas projects by our contractors."

The international oil companies have listed the insecurity in the Niger Delta region, inadequate funds for gas gathering and utilisation projects, and failure by the NNPC to fund its own part of the Joint venture projects as some of the factors militating against attainment of zero gas flare in Nigeria.