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Michael Eboh
Dublin, Ireland — Despite biting economic hardship and shortages in gas supply to critical industries and household, Nigeria lost $1.1 billion, an equivalent of N1.696 trillion, to gas flaring in 2024, as oil and gas companies operating in the country flared 300.5 billion standard cubic feet of gas (SCF) in the 12-month period, according to latest data released by the National Oil Spill Detection and Response Agency (NOSDRA).
In its report on gas flared in the oil and gas industry, NOSDRA noted that the value of gas flared in 2024, was 9.99 per cent higher than the $1 billion, about N1.542 trillion, lost to gas flaring in 2023, using Central Bank of Nigeria’s (CBN) exchange rate of N1,542 to a dollar.
NOSDRA added that the 300.5 billion SCF (BSCF) of gas flared in 2024 contributed 16 million tonnes of carbon dioxide into the atmosphere, had power generation potential of 30,100 gigawatts-hour (GWh), while the offending firms were expected to pay penalties of $601.1 million, about N926.9 billion.
In comparison, in 2023, the oil and gas industry flared 275.5 billion SCF of gas valued at $1 billion, about N1.542 trillion; contributed 14.6 million tonnes of greenhouse gases to the atmosphere; had power generation potential of 27,500 GWh; while the volume of gas flared attracted penalties of $550.9 million, about N849.487 billion.
Giving a breakdown across various segments of the oil and gas industry, NOSDRA reported that firms operating in the country’s onshore oil fields flared 173.8 billion SCF of gas in 2024, valued at $608.2 million (N937.844 billion); contributed 9.2 million tonnes of carbon dioxide to the atmosphere, had power generation potential of 17,400 GWh; while the companies were liable for penalties of $347.6 million (N535.999 billion).
In comparison, in 2023, 124.2 billion SCF of gas was flared onshore, valued at $434.7 million (N670.307 billion), attracting penalties of $248.4 million (N383.033 billion); with power generation potential of 12,400 GWh and carbon dioxide emission of 6.6 million tonnes.
Furthermore, the environmental protection agency noted that companies operating within the country’s offshore oil fields flared 126.8 billion SCF of gas in 2024, valued at $443.7 million (N684.19 billion); equivalent to 6.7 million tonnes of carbon dioxide emission; with power generation potential of 12,700 GWh; while the companies were liable for penalties payment of $253.5 million (N390.897 billion).
In contrast, 151.3 billion SCF of gas was flared offshore in 2023; having power generation potential of 15,100 GWh; contributing 8.0 million tonnes of carbon dioxide emission to the atmosphere; attracting penalties of $302.5 million, about N466.455 billion; while the value of gas flared was N529.4 million, an equivalent of N816.335 billion.
NOSDRA listed the offending companies as 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, Afric Oil and Marketing, Famfa Oil, Moni Pulo, and South Atlantic Petroleum, among others.
It noted that the offending 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 222, 316 and 306, among others.