Zero gas flare an illusion as Nigeria loses N243.23bn

Despite promising to bring an end to the practice of gas flaring, Nigeria’s flared natural gas hovers around 218.9 billion standard cubic feet, translating to N243.23 billion.

Monthly industry statistics published by the Nigerian National Petroleum Corporation (NNPC), indicated that from January to December last year, the country flared a total of 218.9 billion standard cubic feet (scf) of natural gas, which amounted to a loss of about N243.23 billion going by the average price of gas at the international market for that period.

The price of natural gas averaged $3 per 1,000scf over the period, bringing the total to $671 million or N243.23 billion loss to the nation’s economy.

Recall that the Federal Government had promised to end gas flaring latest by 2020, to beat the United Nation’s deadline of 2030, but oil and gas companies operating in the country still flare as much as 10 per cent gas.

Gas flare rate was 9.15 per cent for December 2018, meaning 729.55mmscfd compared with average gas flare rate of 9.92 per cent that is 777.37mmscfd same period in 2017.

It was 11.17 per cent in November (792.49mmscfd) compared with average gas flare rate of 10.07 per cent or 788.54mmscfd a year earlier.
Flare rate was 8.64 per cent in October, meaning 683.49mmscfd compared with average of 9.95 per cent or 787.71mmscfd same period in 2017.

The data showed that 20.54 billion scf of natural gas was flared in September; 22.42 billion scf in August; 21.21 billion scf in July; 21.66 billion scf in June; and 21.20 billion scf in May. Similarly, 23.06 billion scf gas was flared in April; 26.88 billion scf in March; 27.25 billion scf, in February; and 31.68 billion scf in January.

From the 238.91 billion scf of gas supplied in September 2018, a total of 142.09 billion scf of gas was commercialised, comprising 30.36 billion scf and 111.73 billion scf for the domestic and export markets respectively.

The financial and operational statistics further showed that in December, of the 240.59 bcf gas supplied, a total of 151.13bcf was commercialised, consisting of 38.61bcf and 112.52bcf for the domestic and export markets respectively. This translates to a total supply of 1,245.48 mmscfd of gas to the domestic market, and 3,748.47 mmscfd supplied to the export market for the month.

“This implies that 62.61 per cent of the average daily gas produced was commercialised while the balance of 37.39 per cent was re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.15 per cent for the month under review that is 729.55mmscfd compared with average gas flare rate of 9.92 per cent, that is 777.37mmscfd for the period December 2017 to December 2018,” NNPC said.

Out of the 1.011 billion scfd of gas supplied to the domestic market in September 2018, about 614.55mmscfd of gas, representing 60.73 per cent was supplied to gas-fired power plants, while the balance of 397.41mmscfd or 39.27 per cent went to other industries.

Similarly, from September 2017 to September 2018, an average of 1.185 billion scfd of gas was supplied to the domestic market, comprising an average of 743.85mmscfd or (62.75 per cent) as gas supply to the power plants and 441.58mmscfd or (37.25 per cent) as gas supply to industries.”

In November for instance, a total of 214.42bcf natural gas was produced, translating to an average daily production of 7,147.26 mmscfd. For the period November 2017 to November 2018, a total of 3,069.41 BCF of gas was produced representing an average daily production of 7,857.96 mmscfd during the period.

 

Source: Guardian

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