Abstract
The paper evaluated the commercialization and utilizations provisions under the Petroleum Industry Act, 2021. The Petroleum Industry Act 2021 marked a significant legislative reform in Nigeria’s oil and gas sector, introducing a comprehensive framework for the management, regulation, and commercialization of petroleum resources. The paper adopted the doctrinal method of research with primary sources of information drawn from laws and decided cases, while secondary sources of information drawn from journal articles and internet sources. Prior regulatory frameworks failed to adequately address these issues, leading to inefficiencies in gas utilization and the underdevelopment of the domestic gas market. The PIA 2021 was enacted to resolve these issues by creating a new regulatory environment that incentivizes investment in gas infrastructure, promotes the development of the domestic gas market, and imposes stricter penalties for gas flaring. Despite the lofty goals set by the PIA, several challenges remain in achieving full-scale gas commercialization and utilization. Nigeria still faces significant infrastructure gaps, including a lack of pipelines, gas processing facilities, and storage systems. Without these, the transportation and distribution of gas remain difficult, limiting the ability to commercialize gas effectively. The provisions on gas flaring penalties and the shift towards gas utilization must contend with the socio-environmental realities of host communities. To enhance the effectiveness of the PIA’s gas commercialization and utilization provisions, the following recommendations are proposed amongst others, the need for government to prioritize the development of gas infrastructure, particularly gas pipelines, processing plants, and storage facilities, to enable efficient gas distribution and commercialization, the newly established regulatory bodies must be empowered with adequate resources and training to ensure proper enforcement of the PIA’s provisions.
Keywords: Gas, Utilization and Commercialization