Dublin, Ireland — Nigeria lost $266.7 million, about N122.949 billion to gas flaring in three months, as oil and gas companies operating in the country flared 76.2 billion standard cubic feet (SCF) of gas between January and March 2023, according to data released by the National Oil Spill Detection and Response Agency (NOSDRA).
According to its gas flare report for the three months, NOSDRA stated that the value of gas flared in the three-month period of 2023 was 3.53 per cent higher than the $257.6 million, about N118.754 billion, lost to gas flaring in the same period in 2022.
In addition, NOSDRA stated that the companies were expected to pay penalties of $152.4 million, an equivalent of N70.256 billion, compared with $147.2 million, about N67.859 billion penalties they were expected to pay as penalties between January and March 2022.
In general, the oil spill detection and remediation agency reported that the 76.2 billion SCF of gas flared in the first three months of 2023 led to carbon dioxide emissions of 4.0 million tonnes, and had power generation potential of 7,600 gigawatts hour (GWh) of electricity.
In the same period in 2022, the 73.6 billion SCF of gas flared led to carbon dioxide emissions of 3.9 million tonnes and had power generation potential of 7,400 GWh of electricity.
Giving a breakdown of gas flared across different sectors of the petroleum industry in the first three months of 2023, NOSDRA stated that companies operating offshore flared 39.1 billion SCF of gas, valued at $136.9 million (N63.119 billion), were liable for penalties of $78.2 million (N36.05 billion); saw 2.1 million tonnes of carbon dioxide (CO2) emissions and had power generation potential of 3,900 GWh of electricity.
Specifically, NOSDRA disclosed that in January, February and March 2023, 10.805 billion SCF, 15.009 billion SCF and 13.305 billion SCF of gas were flared, respectively.
On the other hand, companies operating in Nigeria’s onshore oil space flared 37.1 billion SCF, valued at $129.8 million, an equivalent of N59.838 billion; were liable for penalties of 74.2 million (N34.206 billion); capable of generating 3,700 GWh of electricity and led to CO2 emissions of 2.0 million tonnes.
Specifically, 12.391 billion SCF, 12.117 billion SCF and 12.569 billion SCF of gas was flared onshore in January, February and March 2023, respectively.
In its analysis of gas flared in 2022, NOSDRA said: “12 million tonnes of CO2 were emitted into the atmosphere contributing to global warming, while useful natural gas valued at $0.79 billion was burned by the Nigerian oil and gas industry; equivalent to fines at the value of $450 million, many of which are not collected. In addition, 22,500 GigaWatt hours of potential power generation went to waste, equivalent to the annual electricity use of 511 million Nigerian citizens.”
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