Oil firms flare $734m worth of gas

*Shell gas flare at Kolo Creek.

*Gas flaring.

Sam Ikeotuonye 12 October 2016, Sweetcrude, Lagos – The Nigeria National Petroleum Corporation, NNPC, and the oil and gas companies operating in the country flared 244.72 billion Standard Cubic Feet, SCF, of gas between August 2015 and July 2016, leading the nation to lose $734.16 million (about N183.54 billion).

According to NNPC’s Monthly Financial and Operations Report for July 2016, the gas flared during the period represented 8.87 per cent of the total gas produced.

About 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, the report indicated.

It added that 348 billion of the commercialised gas was utilised locally, while 1.204 trillion SCF was exported. Of the total volume utilised locally, 226.43 billion SCF was sent to power stations to generate electricity while 121.67 billion SCF went to industries.

The report further indicated that as for the volume exported, 13.04 billion SCF was piped to Ghana, Togo and Benin Republic 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).

It also stated that 821.94 billion SCF of the non-commercialised gas was re-injected; 140.77 billion SCF was used as fuel gas, while 244.72 billion SCF was flared.

“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 report further said.

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