* Oil firms burn 275.2BSCF of gas * Shell, Chevron, ExxonMobil major culprits * Flared gas can generate 27,500GWh power – NOSDRA
Ike Amos
Dublin, Ireland — Nigeria lost $1 billion, an equivalent of N891 billion, to gas flaring in one year, as oil and gas companies operating in the country burnt 275.2 billion standard cubic feet, SCF, of gas in 2023, according to data released by the National Oil Spill Detection and Response Agency, NOSDRA.
In its gas flare report for the period, NOSDRA disclosed that the volume of gas flared in 2023 was 27.03 per cent higher than the volume flared in 2022.
According to the environmental watchdog, 224.9 billion SCF, BSCF, of gas was flared by the companies in 2022, valued at $787.2, an equivalent of N701.395 billion, using Central Bank of Nigeria’s, CBN, exchange rate of N891 to a dollar.
Flared gaass can generate 27,500GWh power – NOSDRA
NOSDRA noted that the 275.2 billion SCF of gas flared in 2023 emitted 14.6 million tonnes of carbon dioxide into the atmosphere; has power generation potential of 27,500 gigawatts hours, GWh, while the offending companies were liable for penalties of $550.4 million, an equivalent of N490.406 billion.
In 2022, the 224.9 billion SCF of gas flared had power generation potential of 22,500 GWh; was equivalent to 11.9 million tonnes of carbon dioxide emission; while the offending firms were liable of penalties of 449.8 million, about N400.772 billion.
Giving a breakdown of the volume of gas flared across segments in the petroleum industry, NOSDRA noted that companies operating in the country’s onshore oil space accounted for 44.95 per cent of total volume flared in the year, with 123.7 billion SCF of gas.
It added that the volume flared by onshore oil companies was valued at $432.8 million, about N385.625 billion; was capable of generating 12,400 GWh of electricity; led to the emission of 6.6 million tonnes of carbon dioxide; while the companies were liable for fines of $247.3 million, about N220.344 billion.
On the other hand, companies operating at oil fields offshore, accounted for 55.09 per cent of total gas flared, with 151.6 billion SCF of gas; which saw the emission of 8.1 million tonnes of carbon dioxide; was capable of generating 15,200 GWh of electricity.
The volume of gas flared by companies offshore was valued at 530.4 million (472.586 billion), while the companies were liable for penalties of $303.1 million, about N270.062 billion.
Shell, Chevron, others are culprits
Some of the offending companies, according to NOSDRA include Shell Petroleum Development Company, SPDC; Nigerian Petroleum Development Company, NPDC; Chevron Nigeria; Mobil Oil; Elf Petroleum Nigeria; Nigeria Agip Oil Company, NAOC; Addax Petroleum; Texaco Overseas (Nigeria), 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, OMLs, 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 222, 316 and 306, among others.
150.2BSCF of gas produced in December
In a related development, the Nigerian National Petroleum Company Limited, NNPC, said Nigeria’s gas output rose by 2.2 per cent in December 2023.
It revealed that oil and gas companies operating in the country produced 150.229 billion standard cubic feet, SCF, of gas in the month, compared with November 2023’s gas output of 146.991 billion SCF, BSCF.
The NNPC, however, stated that 7.75 per cent of the total gas produced in the month under review, put at 11.646 billion, was flared.
The NNPC added that the volume of gas flared in December was 1.53 per cent higher than the 11.471BSCF of gas flared in November 2023.
Giving a breakdown of total gas output in the month under review, the NNPC stated that associated gas output stood at 97.903 billion, representing 65.2 percent of total gas output; while Non-Associated Gas output stood at 52.327 billion SCF, representing 34.83 percent of total output.
Furthermore, the NNPC noted that of the total gas produced in the month, 8.788 billion SCF was utilised as fuel gas; 61.21 billion SCF was utilised by the Nigerian Liquefied Natural Gas, NLNG; while 1.365 billion SCF and 1.84 billion SCF was utilised for the manufacture of Natural Gas Liquids/Liquefied Petroleum Gas, NGL/LPG.
The national oil company further stated that domestic gas sales stood at 23.447 billion SCF; while 41.931 billion SCF of gas was re-injected and utilised for gas lift make up.
To this end, total gas utilised in the month under review stood at 138.954 billion SCF, rising by 2.54 percent compared with 135.518 billion SCF recorded in November 2023; while gas flared stood at 11.646 billion SCF.
The NNPC reported that Shell Nigeria, under the joint venture segment, recorded the highest gas output in the month under review, accounting for 24.24 percent of total gas output with 36.416 billion SCF of gas.
TotalEnergies Exploration and Production Nigeria, TEPNG, followed with 19.812 billion SCF of gas, while Mobil and Chevron trailed with 19.731 billion SCF and 17.917 billion SCF of gas, respectively.
In the production sharing contract, PSC, segment, Star Deepwater Agbami Floating Production Storage and Offloading, FPSO, vessel recorded 12.409 billion SCF of gas, Total Upstream Nigeria recorded 12.087 billion SCF, while Esso Exploration Production Nigeria and Esso Erha FPSO recorded 4.575 billion SCF and 4.412 billion SCF was recorded respectively.
On the other hand, the NNPC disclosed that the Nigeria Petroleum Development Company/Seplat Development Company joint venture; Seplat Petroleum; NPDC-Chevron Nigeria Limited joint venture, were the worst offenders in the month under review, with all of them flaring their entire (100 percent) gas output.
