A Review of the Nigerian Energy Industry

Shell now accounts for 18% of flared gas in Nigeria

Gas flaring in the Niger Delta
Gas flaring in the Niger Delta

Kunle Kalejaye 26 June 2014, Sweetcrude, Lagos – Shell Petroleum Development Company, SPDC, now accounts for 18 per cent of the 1.2 billion cubit feet  per day of gas currently being flared in Nigeria‎.

Country Chair, Shell Companies in Nigeria and Managing Director Shell Petroleum Development Company of Nigeria, Mutiu Sunmonu, disclosed this in Lagos.
He said Shell was working with the Nigerian government and it’s joint venture partners on achieving the objective of ending flaring of associate gas as soon as possible.
According to him, SPDC reduced flaring volume from its facilities by about 75 per cent between 2003 and 2012. It has also reduced flaring intensity which is the amount of gas flared per barrel of oil produced by around 60 per cent over the same period.
Sunmonu ‎said these reductions were the result of a multi-year programme introduced in 2000 to install equipment to capture associated gas from its oil producing facilities, adding that when completed, these projects would take SPDC flaring to below current industry average levels.
Said the Shell Nigeria boss: “Although there was a reduction of about one-fifth in volume of gas flared, this was largely due to lower than expected oil production caused by sabotage, theft and related deferment where there were reduced volumes of associated gas and also improved operational efficiencies from the functional facilities.
“However, frequent pipeline sabotage disrupted our gas processing systems and impacted negatively on performance, contributing to about a five per cent increase in flare intensity compared to 2012.
‎”Joint venture funding challenges have resulted in delays to some gas gathering projects, two of these projects which were expected to gather an additional 35 per cent of associated gas by 2014 to 2015 are likely to be delayed.”
Despite these challenges, Sunmonu noted that the overall trend in associated gas gathering and flaring reduction was positive and added that SPDC has a worked plan in place to drive further reductions.
The SPDC chair said when the $4 million SPDC JV project at Forcados, near Warri Delta State, was completed, the company’s gas flare reduction record would be the best in the world.
He claimed that SPDC was the first venture to supply gas inside Nigeria and remains a pioneer, developing gas for power with its Afam VI power plant, which uses gas from the company’s Okoloma gas plant with the capacity to increase the nation’s current electricity power supply by approximately 20 per cent.
Demand for gas in Nigeria and other countries has grown in recent years whilst technology to harness, liquefy and export natural gas to distant markets has since become commercial.
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