Sufuyan Ojeifo
3 July 2009
Abuja — The Senate yesterday passed the Gas Flaring (Prohibition and Punishment) Bill, which seeks, among others, to ensure gas flare out in Nigeria by December 31, next year.
Some senators who opposed the Bill argued that the Petroleum Industry Bill (PIB), which on Wednesday passed through the second reading, could incorporate provisions of the Gas Flaring Bill.
The PIB, when passed, would repeal about 20 existing Acts currently regulating the oil and gas sector and emerge as an omnibus law establishing the legal and regulatory framework, institutions and regulatory authorities for the Nigerian Petroleum industry.
The law would establish guidelines for operation of the upstream and downstream sectors.
Senators Nimi Barigha-Amange (PDP, Bayelsa East) and Heineken Lokpobiri (PDP, Bayelsa West), said the Gas Flaring (Prohibition and Punishment) Bill specifically should be harmonised with the PIB.
But the Upper House decided that the Gas Flaring Bill should be concluded, having advanced to the third reading stage.
Senate President, Senator David Mark, said: "it would have been easier for the Petroleum Industry bill to have been stopped on Wednesday before scaling second reading, than stop the Gas Flaring Prohibition bill, which is being considered for third reading."
The Upper House passed the Bill, which prescribes that oil companies that fail to stop gas flaring by December 31, 2010, should be made to pay twice the price of gas flared in the international market.
It, however, states: "the minister may grant a permit to flare or vent gas in cases of start-up, equipment failure or shut down for period not more than 30 days."
In his lead debate during second reading of the Bill, Chairman of the Senate Committee on Gas, Senator Osita Izunaso, said Nigeria had abundance of natural gas resource in commercial quantity, which most times was produced essentially as a consequence of oil Associated with Gas (AG).
He said, "during separation of the gas from oil, gas is flared. This gas flaring has adverse effect on the health of the people, as Nigeria is known to flare about 2.5 bcf a day into the environment."
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