05 October 2016, Sweetcrude, Abuja — Nigeria lost $734.16 million, about N183.54 billion to gas flaring in 12 months, as the Nigeria National Petroleum Corporation (NNPC), as well as oil and gas companies operating in the country, flared 244.72 billion Standard Cubic Feet (SCF) of gas between August 2015 and July 2016.
The NNPC, in its Monthly Financial and Operations Report for the month of July 2016, disclosed that the volume of gas flared represented 8.87 per cent of total gas produced in the period under review.
Specifically, the NNPC report stated that 2.76 trillion SCF of gas was produced in the 12-month period, out of which 1.552 trillion SCF was commercialised, while 1.207 was not commercialised.
Of the commercialised gas, 348 billion was utilised domestically, while 1.204 trillion SCF was utilised for export.
In the domestic gas segment, 226.43 billion SCF was for gas to power while 121.67 billion SCF was sent to industries.
On the export segment, 13.04 billion SCF was exported through the West African Gas Pipeline; 69.25 billion SCF was exported through the Escravos Gas-to-Liquid project, 108.41 billion SCF was exported as Natural Gas Liquids/Liquefied Natural Gas; while 1.013 trillion SCF of gas was exported through the Nigeria Liquefied Natural Gas (NLNG).
In the non-commercialised segment, 821.94 billion SCF was re-injected; 140.77 billion SCF was used as fuel gas, while 244.72 billion SCF was flared.
Furthermore, the report disclosed that the NNPC earned $925.248 million from the gas export between August 2015 and July 2016.
According to the report, NNPC’s gas export proceeds accounted for 28.8 per cent of a total crude oil and gas export proceeds of $3.212 billion in the 12-month period.
The NNPC said, “Total export crude oil and gas receipt for the period of August 2015 to July 2016 stood at $3.21 billion. Out of which the sum of $3.16 billion was transferred to Joint Venture (JV) Cash Call in line with 2015/2016 approved budget and the balance of $48.99 million was paid to the Federation Account.
“However, this amount falls short of the calendared appropriated amount of $615.80 million and $712.46 million for 2015 and 2016 respectively. This is due to worsening production and fall in crude oil price.”
The NNPC blamed the low earnings on an upsurge in attack and sabotage of oil facilities in the Niger Delta.
According to the NNPC, at the Forcados Terminal alone, about 300,000 barrels of oil per day (b/d) were shut in since February 2016 following Force majeure declared by SPDC.
“A number of crude oil liftings were deferred until the repair is completed. Other major terminal affected by the renewed spate of vandalism includes Bonny, Usan and Que Ibo terminals.”
On the other hand, the NNPC earned N27.01 billion from the domestic sale of gas in the 12-month period, representing 2.73 per cent of total domestic crude oil and gas sales proceeds for the period under review.