Ike Amos
09 March 2019, Sweetcrude, Lagos — Oil and gas companies operating in the country, despite efforts and campaign by the Federal Government, flared 260.17 billion Standard Cubic Feet, SCF, of gas between January and November 2018, according to data released by the NNPC.
Using an average gas price of $3.50 per 1,000 SCF and an exchange rate of N310 to a dollar, the flaring of 260.17 billion SCF of gas translates to a loss of N282.284 billion, an equivalent of $910.595 million over the 11-month period.
The NNPC, in its Monthly Financial and Operations Report for November 2018, disclosed that the amount of gas flared from January to November 2018 represented 10.02 percent of total gas produced in the same period.
Particularly, the report noted that out of the total gas output of 2.596 trillion SCF, 391.58 billion SCF was supplied to the domestic market, with 243.55 billion SCF and 148.04 billion SCF utilized by the power and industrial sector respectively.
Out of the total output, the report disclosed that 1.117 trillion SCF of gas was exported, with 23.14 billion SCF sent to the West African Gas Pipeline; 63.3 billion SCF was utilsed by the Escravos Gas to Liquid; while 32.27 billion SCF and 998.29 billion SCF was utilized for Natural Gas Liquid/Liquefied Petroleum Gas and the Nigerian Liquefied and Natural Gas, NLNG respectively.
Also Read: Nigeria loses N153bn to gas flaring yearly – Govt
https://sweetcrudereports.com/2019/03/06/nigeria-loses-n153bn-to-gas-flaring-yearly-govt/
However, out of the total, the report noted that 1.09 trillion SCF of gas was not commercialized, with 704.5 billion SCF, 122.68 billion SCF and 260.17 billion SCF was re-injected, used as fuel gas and flared respectively.
In its month-on-month analysis of the volume of gas flared, the NNPC report disclosed that in January, February, March, April, May, June and July 2018, 31.68 billion SCF, 27.25 billion SCF, 26.88 billion SCF, 23.06 billion SCF, 21.20 billion SCF, 21.66 billion SCF and 21.21 billion SCF respectively.
On the other hand, 22.42 billion SCF, 20.54 billion SCF, 20.51 billion SCF and 23.78 billion SCF of gas were flared respectively in August, September, October and November 2018.
The report added that “Total gas supply for the period November 2017 to November 2018 stood at 3.071 trillion SCF out of which 466.44 billion SCF and 1.318 billion SCF were commercialised for the domestic and export market respectively. Gas –Injected, Fuel gas and Gas flared stood at 1.287 trillion SCF.”
Furthermore, the report noted that the NNPC Group operating revenue for the month of November 2018 stood at N292.30 billion which was N80.78 billion lower than the previous month performance while expenditure for the month equally reduced by N95.50 billion following decrease in the Nigeria Petroleum Development Company’s (NPDC) expenditure giving rise to an excess of N14.72 billion.
Also Read: Russian needs EU guarantees on TurkStream pipeline – Medvedev
“This month revenue is lower than the budgeted revenue by 45 percent while operating expenditure in the month which stood at N290.23 billion is lower than the budget by 8.79 percent owing largely to the inability of the refineries to achieve good operational performance as profiled in their budgets,” the report added.
