A Review of the Nigerian Energy Industry

Nigeria loses $783m to gas flaring in two years

Kunle Kalejaye 27 October 2015, Sweetcude, Lagos – Nigeria flared about $783.88 million-worth of natural gas in 2013 and 2014, according to a report by Stakeholder Development Network, SDN, supported by the National Oil Spill Detection Response Agency, NOSDRA‎. 

Shell gas flare at Kolo Creek - surrounded by green vegetation.
Gas flare at Kolo Creek

The report also indicated that the value of the gas flared during oil production has the potential to generate over 27, 000 megawatts of electricity into the national grid.

According to the data also, Nigeria releases over 16 million tonnes of carbon dioxide into the atmosphere, contributing heavily to environmental pollution and global climate change.

“Gas flaring also releases NOx, sulphur and a variety of noxious gases like benzene into the air close to areas of dense habitation which creates localised environmental and human health problems,” the report noted.

SDN and NOSDRA, in the report, explained that gas flared each day in Nigeria could be used to produced power, fertiliser, cooking ‎and transport fuels that will help oil producing communities set up small businesses and grow the region’s economy.

“Communities across the Delta suffer from an unreliable supply of electricity. Investing in reliable distribution of gas-powered electricity would create a stronger economy for Nigeria, as well as satisfy the deep-seated frustrations of communities across the Delta.

“In order to reduce the flaring of associated gas and kick-start a domestic gas market, a government-led initiative is needed to provide the relevant regulatory framework and incentive for its use,” the data noted.

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