Ike Amos
Lagos — Nigeria lost $911.1 million, about N379.37 billion to gas flaring in 2021, as oil and gas companies operating in the country flared 260.3 billion standard cubic feet of gas (SCF) between January and December 2021.
According to data obtained from the National Oil Spill Detection and Response Agency (NOSDRA), the amount lost to gas flaring in 2021 was 24.08 per cent lower than the $1.2 billion lost to the activity in 2020.
In addition, the volume flared in 2021, 260.3 billion SCF, was 26.39 per cent lower than the 353.6 billion SCF flared by the companies in 2020.
Also, the defaulting companies were expected to pay $520.6 million, about N216.77 billion as penalties for flouting the directive on gas flaring; this was 26.39 per cent lower than the penalties of $707.2 million, an equivalent of N294.47 billion, recorded in 2020.
NOSDRA, however, stated that the majority of the penalties placed on the companies were never collected by the relevant authorities.
In addition, NOSDRA disclosed that the volume of gas flared in 2021 was equivalent to carbon dioxide (CO2) emission of 13.8 million tonnes. The volume of gas flared in 2020 was equivalent to 18.8 million tonnes of CO2 emission.
Also, the oil spill remediation agency noted that the volume of gas flared in 2021 was capable of generating 26,000 gigawatts hour of electricity, equivalent to the annual electricity use of 591 million people.
In comparison, the gas flared in 2020 was capable of generating 35,400 gigawatts hour of electricity.
NOSDRA further stated that oil and gas companies operating onshore flared 135 billion SCF of gas in the year under review, valued at $472.6 million (N196.79 billion); with penalties payable of $270.1 million (N112.47 billion); CO2 emission equivalent of 7.2 million tonnes and power generation potential of 13,500 gigawatts per hour of electricity.
On the other hand, companies operating at offshore locations flared 125.3 billion SCF of gas in 2021, valued at $438.4 million (N182.55 billion); penalties payable of $250.5 million (N104.31 billion); power generation potential of 12,500 gigawatts per hour of electricity and CO2 emission equivalent of 6.7 million tonnes.
NOSDRA said: “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.”
N416.39 to a dollar
Name Mscf Month
Onshore 23041736.16 2020-01
Onshore 17182503.64 2020-02
Onshore 19272478.67 2020-03
Onshore 23022663.77 2020-04
Onshore 24784084.16 2020-05
Onshore 18356155.48 2020-06
Onshore 10127349.93 2020-07
Onshore 13814335.02 2020-08
Onshore 4916782.27 2020-09
Onshore 12529248.75 2020-10
Onshore 17501931.64 2020-11
Onshore 20547516.19 2020-12
Name Mscf Month
Offshore 15501676.35 2020-01
Offshore 14906450.82 2020-02
Offshore 16518523.34 2020-03
Offshore 16467614.51 2020-04
Offshore 13815230.21 2020-05
Offshore 10636055.99 2020-06
Offshore 7852710.747 2020-07
Offshore 10998911.71 2020-08
Offshore 3288501.727 2020-09
Offshore 10699244.82 2020-10
Offshore 14495647.36 2020-11
Offshore 13341824.2 2020-12
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