BusinessDay’s investigation reveals that Nigeria flared natural gas estimated at N696 billion within the first 11 months of this year. Data from the Nigeria Gas Flare Tracker indicates that approximately 241.1 billion standard cubic feet of gas, valued at $843 million, was flared from January to November.
Experts emphasize the potential of this flared gas, stating it could generate megawatts of electricity, sufficient to power millions of households. Nigeria’s current electricity generation stands at 4,212.86MW, whereas the installed capacity is 13,014.14MW. Addressing the issue of gas flaring is crucial, especially considering that over 85 million Nigerians lacked access to electricity as of 2021.
Industry experts advocate for gas commercialization, proper gas regulation, the development of floating Liquefied Natural Gas (FLNG), and amendments to the Petroleum Industry Act (PIA). The optimal strategy involves practical efforts for gas commercialization, supported by a robust infrastructure network. This includes capturing flared gas at well sites through efficient modular processing facilities.
Nigeria lost $22.9 billion to gas flaring in the past decade, emphasizing the economic impact. The House of Representatives has expressed its commitment to recovering over $9 billion in gas flaring fines from oil and gas companies. Experts highlight the need for gas price deregulation to incentivize operators and recommend the development of FLNG vessels to minimize costs and enhance efficiency.
The government’s role is pivotal, involving amendments to the PIA to provide clarity on rights to associated gas. Gas price deregulation is crucial to incentivize the supply chain and encourage investment in infrastructure for gas trapping, transportation, treatment, and delivery.
Source: Business Day