Ike Amos
Dublin, Ireland — Nigeria lost $183.6 million, about N76.38 billion, in three months, from April to June 2022, as oil and gas firms operating in the country flared 52.5 billion standard cubic feet (SCF) of gas in the second quarter of the year, according to data released by the National Oil Spill Detection and Response Agency (NOSDRA).
The volume of gas flared in the second quarter of 2022, NOSDRA noted, was 28.67 per cent lower than the 73.6 billion SCF of gas flared in the country in the first quarter of 2022; while it was 6.28 per cent higher than the 49.4 billion SCF of gas flared by the companies in the second quarter of 2022.
According to NOSDRA, the volume of gas in the second quarter of 2022, was equivalent to carbon dioxide (CO2) emissions of 2.8 million tonnes; capable of generating 5,200 gigawatt-hour of electricity, while the companies are liable for penalties of $104.9 million, about N43.64 billion, which are hardly paid by the companies.
In comparison, the 73.6 billion SCF of gas flared in the first quarter of 2022 led to a loss of $257.5 billion, about N107.12 billion, revenue to the country; was equivalent to CO2 emissions of 3.9 million tonnes; capable of generating 7,400 gigawatts hour of electricity; while the offending companies were liable for penalties for $147.2 million, about N61.24 billion.
In addition, quarter-on-quarter, the 49.4 billion SCF of gas flared in the second quarter of 2021 was valued at $173 million, about N71.97 billion, with the defaulting companies liable to fines of $98.9 million (N41.14 billion); was capable of generating 4,900 gigawatt-hour of electricity and caused CO2 emission of 2.6 million tonnes.
Furthermore, giving a breakdown of gas flared in the second quarter of 2022, NOSDRA disclosed that companies operating in offshore oil fields in the Nigerian petroleum industry flared 32.2 billion SCF of gas valued at $112.9 million, about N46.97 billion; equivalent to CO2 emission of 1.7 million tonnes; was capable of generating 3,200 gigawatt-hour of electricity; while the offshore firms were liable for penalties of $64.5 million, about N26.83 billion.
On the other hand, NOSDRA noted that Nigeria lost $70.8 million, about N29.45 billion; penalties of $40.4 million, about N16.81 billion; power generation potential of 2,000 gigawatt-hour of electricity and suffered 1.1 million tonnes of CO2 emission, as companies operating in the countries onshore oil fields flared 20.2 billion SCF of gas.
The oil spill watchdog explained that: “Flared gas could be harnessed to provide power and electricity, which Nigeria faces an acute shortage of. This could be done at a local scale, or by feeding into Nigeria’s national grid. However, this is in a bad state of repair, and a combination of infrastructure, regulation and investment is required to encourage gas-to-power initiatives that could help address Nigeria’s power challenges.”
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