
*Oil firms flare 83.9BSCF gas
*Shell, Chevron, ExxonMobil major offenders
*Flared gas can generate 8,400GwH power – NOSDRA
Michael Eboh
Dublin, Ireland — Nigeria lost $293.6 million, an equivalent of N340.87 billion, to gas flaring in the first quarter of this year, as oil and gas firms operating in the country burnt 83.9 billion standard cubic feet, BSCF, of gas between January and March.
This is according to the latest figures released by the National Oil Spill Detection and Response Agency, NOSDRA, in its Gas Flaring Report for the first three months of 2024.
NOSDRA, in the report, noted that the amount of money lost to gas flaring was 10 percent higher than the $266.9 million (about N309.871 billion) lost in 2023.
According to the environmental watchdog, the volume of gas flared in the first quarter of 2024 emitted 4.5 million tonnes of carbon dioxide into the atmosphere and was capable of generating 8,400 gigawatts hour, GwH, of electricity, while the offending companies were liable for payment of fines totalling $167.7 million, an equivalent of N194.699 billion.
In comparison, NOSDRA noted that between January and March 2023, the oil firms flared 76.3 billion SCF of gas, which was valued at $266.9 million (N309.871 billion); was capable of generating 7,600 gigawatts-hour of electricity; contributed 4.1 million tonnes of carbon dioxide emission, with the firms liable for penalties of $152.5 million, an equivalent of N177.053 billion.
Giving a further breakdown of gas flared by production segment, the environmental regulatory agency stated that the oil and gas firms operating in the country’s onshore oil space flared 42.5 billion SCF of gas in the first three months of 2024, accounting for 50.72 percent of total gas flared.
NOSDRA added that the gas flared onshore was valued at $148.9 million (about N172.873 billion) with payable penalties of $85.1 million (about N98.8 billion); while it contributed 2.3 million tonnes of carbon dioxide to the atmosphere and had the potential to generate 4,300 GwH of electricity.
In the same period in 2023, companies operating onshore, caused the country a loss of $130 million (N150.93 billion), from the flaring of 37.1 billion SCF of gas, which has power generating potential of 3,700 GwH and contributed two million tonnes of carbon dioxide emissions, while penalties payable by the companies stood at $74.3 million (N86.262 billion).
On the other hand, companies operating offshore flared gas valued at $144.7 million in the first three months of 2024, accounting for 49.28 percent of total gas flared in the period.
Specifically, the companies flared 41.3 billion SCF of gas; 5.63 per cent higher than the 39.1 billion SCF flared in the same period in 2023; while the quantity flared elicited penalties of $82.7 million, carbon dioxide emission of 2.2 million tonnes and had power generation potential of 4,100 GwH.
Comparatively, in the same period in 2023, offshore companies flared 39.1 billion SCF of gas valued at $136.9 million, with power generation potential of 3,900; carbon dioxide emission of 2.1 million tonnes and penalties payable of $78.2 million.
Some of the offending gas flaring companies in the first quarter of this year, according to NOSDRA, include Shell Petroleum Development Company, SPDC; Nigerian Petroleum Development Company, NPDC; Chevron Nigeria; Mobil Oil (ExxonMobil); Elf Petroleum Nigeria (TotalEnergies); Nigerian Agip Oil Company, NAOC; Addax Petroleum; Texaco Overseas Nigeria (Chevron); Esso Exploration and Production Nigeria; Allied Energy Resources; Ultramar Petroleum; Atlas Petroleum; Cromwell; and South Atlantic Petroleum, among others.
These companies flared gas from Oil Mining Leases, OML, 04, 05, 11, 13, 14, 17, 18, 22, 28, 23, 24, 38, 40, 42, 43, 72, 49, 54, 90, 95, 67, 70, 104, 59, 99, 100, 101, 102 and Oil Prospecting Licences, OPLs, 222, 316 and 306, among others.
Gas output dips by 21% in February
In another report, the Nigerian National Petroleum Company, NNPC, indicated that Nigeria’s gas output dipped by 21 per cent to 144.909 billion standard cubic feet, BSCF, at the end of February 2024, compared with gas output of 182.742BSCF in the preceding month.

The NNPC, in its monthly gas utilisation report for February 2024, disclosed that average daily gas production in the country dropped by 15 per cent from 5.895 billion SCF in January 2024 to 4,997 billion SCF in February 2024.
Giving a breakdown of gas produced in the month under review, the NNPC stated that Associated Gas, AG, accounted for 67.73 percent of total gas output, with 98.142 billion SCF, while Non-Associated Gas, NAG, accounted for 32.27 per cent of the total gas output.
Analysing the volume of gas utilised from the total output, the NNPC reported that 7.885 billion SCF was utilised as fuel gas; 60.979 billion SCF was utilised by the Nigerian Liquefied Natural Gas, NLNG; while 73 million SCF was utilised by the Escravos Gas to Liquid, EGTL, project.
In addition, it stated that 1.494 billion SCF was utilised as Natural Gas Liquid/Liquified Petroleum Gas, NGL/LPG; domestic gas sales by the Nigerian Gas Company and others took up 17.734 billion SCF of gas; while 45.904 billion SCF was utilised for gas reinject and gas lift make-up.
To this end, the NNPC noted that 134.067 billion SCF of gas, representing 92.51 percent of total output, was utilised, while 10.67 billion SCF, representing 7.4 percent, was flared.
Further analysis showed that the total volume of gas utilised in February 2024 dipped by 14.37 percent compared with the 156.562 billion SCF utilised in January 2024, while the volume of gas flared in February 2024 was 14.67 percent lower than the 12.505 billion SCF of gas flared in the previous month.
Shell Nigeria, operating in the joint venture segment, recorded the highest gas output in the month under review, with 38 billion SCF of gas, followed by TotalEnergies, with gas output of 20.53 billion SCF and Mobil, with gas output of 20.361 billion SCF.
Star Deepwater-Agbami Floating Production Storage and Offloading, FPSO, vessel, operating under the product sharing contract arrangement, recorded gas output of 12.973 billion SCF, while Total Upstream Nigeria recorded gas output of 10.741 billion SCF.
However, the NNPC identified Seplat and the Nigerian Petroleum Development Company, NPDC, as the worst offenders in terms of gas flaring, with the companies flaring 100 per cent of their total of 160 million SCF and six million SCF output in the month under review, while Enageed (Oil Mining Lease 148) and Agip Energy and Natural Resources (Agbara) flared 97.03 percent and 94.53 percent, respectively, of their gas outputs.
N1.26trn earned from exports in Q4 2023 – NBS
Meanwhile, the National Bureau of Statistics, NBS, reports a national revenue of N1.257 trillion from the export of of gas in the fourth quarter of 2023.
The NBS, in its Foreign Trade Report for the fourth quarter of 2023, disclosed that the amount earned from gas export in the period under review was 78.88 percent higher than the N704.878 billion recorded from gas exports in the same period in 2022.

According to the NBS, gas exports accounted for 9.9 per cent of total exports in the fourth quarter of 2023, compared with 11.08 per cent in the same period in 2022.
Giving a breakdown of gas exports in 2023, the NBS reported that natural gas export stood at N1.02 trillion, other petroleum gases export stood at N150.662 billion, while the country earned N90.705 billion from liquefied petroleum gas export, accounting for eight per cent, 1.19 per cent and 0.71 per cent of total exports, respectively.
Specifically, natural gas, other petroleum gas and liquefied petroleum gas export ranked second, fourth and seventh most exported commodities in the period under review.
In comparison, in the fourth quarter of 2022, the country only exported natural gas, valued at N704.878 billion, ranking the second most exported commodity and accounting for 11.08 per cent of total export in the fourth quarter of 2022.
In its analysis of exports in the fourth quarter of 2023, the NBS said: “Further analysis on fourth-quarter trade by partners shows that the top five export destinations were the Netherlands with N1.910 trillion or 15.05 per cent, India with N1.101 trillion or 8.68 per cent, Spain with N1.030 trillion or 8.11 per cent, Canada with N907.64 billion or 7.15 per cent, France with N799.77 billion or 6.30 per cent of total exports.
“Altogether, exports to the top five countries amounted to 45.29 per cent of the total value of exports. The largest exported product in the fourth quarter of 2023 was ‘Petroleum oils and oils obtained from bituminous minerals, crude’ valued at N10.311 trillion representing 81.23 per cent, this was followed by ‘Natural gas,’ with N1,015.84 billion accounting for 8.0 per cent and ‘Urea, whether or not in aqueous solution’ with N251.90 billion or 1.98 per cent of total exports.”