Oil firms flare N11bn gas in one month

*Shell gas flare at Kolo Creek..

*Shell gas flare at Kolo Creek..

Ike Amos 16 September 2016, Sweetcrude, Abuja – Nigeria lost $44.4 million (about N11.1 billion) as the Nigerian National Petroleum Corporation, NNPC, the Nigerian Petroleum Development Company, NPDC, and other oil companies flared 14.8 billion Standard Cubic Feet, SCF, of gas in June this year.
Data obtained from the NNPC’s Monthly Financial and Operations Report for June 2016, stated that the amount of gas flared in June represented a decline of 6.33 per cent, compared to 15.8 billion SCF of gas flared in May.
The Nigerian Gas Company puts the average gas price at $3 per 1,000 SCF, meaning that the flaring of 14.8 billion SCF translates to a loss of $44.4 million. While using an average exchange rate of N250 to a dollar, the amount translates to N11.1 billion.
The NNPC report stated that a total of 216.60 billion SCF of natural gas were produced in the month of June 2016, translating to an average daily production of 7.22 billion SCF per day.
It also noted that for the period July 2015 to June 2016, a total of 2.823 trillion SCF of gas was produced representing an average daily production of 7.714 billion SCF per day during the period.
The report explained that production from Joint Ventures (JVs), Production Sharing Contracts (PSC) and NPDC contributed about 69.98 percent, 21.84 per cent and 8.18 per cent respectively to the total national gas production.
In addition, it added that out of the total gas produced in June, a total of 115.88 billion SCF of gas was commercialised, comprising of 16.50 billion SCF and 99.38 billion SCF for the domestic and export market respectively.
This, the report noted, translates to an average daily supply of 550.10 million SCF per day of gas to the domestic market and 3.31 billion SCF per day of gas supplied to the export market.
“This implies that 54.51 per cent of the total gas produced was commercialized while the balance of 45.49 per cent was either re-injected, used as upstream fuel gas or flared.
“Gas flare rate was 6.98 per cent for the month of June 2016, that 494.70 million SCF per day compared with average gas flare rate of 8.62 per cent, that is, 660.89 million SCF per day for the period July 2015 to June 2016,” the NNPC said.
The report further stated that from the 550.10 million SCF per day of gas supplied to the domestic market in June 2016, about 326.80 million SCF per day of gas representing 59.41 per day was used for gas-fired power plants while the balance of 223.30 million SCF per day or 40.59 per cent was supplied to other in

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