Nigeria: Oil Firms Flared N163bn Gas In 2015

NIGERIA lost $831 million, about N162.6 billion, as oil and gas firms in the country flared 271.38 billion Standard Cubic Feet, SCF, gas in 2015. The amount of gas flared, according to the Nigerian National Petroleum Corporation, NNPC, in its Monthly Financial and Operations Report for December 2015, represented 9.5 per cent of total gas production of 2.858 trillion SCF recorded in 2015.

Particularly, the report put total domestic gas supply at 380.45 billion SCF, with 254.44 billion SCF for domestic gas to power, and 126.01 billion SCF for industries. In addition, total gas export was put at 1.242 trillion SCF, broken down into 21.62 billion SCF for the West African Gas Pipeline, while Escravos Gas to Liquid, EGTL; Natural Gas Liquid/Liquefied Petroleum Gas, NGL/LPG; and the Nigerian Liquefied Natural Gas, NLNG, recorded 62.43 billion SCF, 87.63 billion SCF and 1.07 trillion SCF respectively.

On the other hand, 1.236 trillion SCF of gas was not commercialised, as 818.83 billion SCF was re-injected; 146.14 billion SCF was used as fuel gas, while 271.38 billion SCF was flared. Using the average gas price of $3 per 1,000 SCF as stipulated by the Nigerian Gas Company, NGC, the 271.38 billion SCF of gas flared by the oil companies in 2015 translated to a loss of $831 million, and equivalent of N162.6 billion using an average exchange rate of N200 to a dollar. Further breakdown of gas flared by oil companies in 2015 on a month-by-month basis showed that in January, February, March, April, May and June, oil and gas companies flared 26.68 billion SCF, 26.20 billion SCF, 28.49 billion SCF, 22.66 billion SCF, 19.07 billion and 18.66 billion SCF respectively. While from July to December, they flared 18.80 billion SCF, 21.28 billion SCF, 21.89 billion SCF, 21.81 billion SCF, 23.25 billion SCF and 22.59 billion SCF respectively. Giving an analysis of natural gas off-take, commercialisation and utilisation, the report said out of the 228.55 billion SCF of gas produced in December 2015, a total of 126.23 billion SCF of gas was commercialised comprising 34.17 billion and 92.05 billion SCF for the domestic and export market respectively. This, according to the report, translates to an average daily supply of 1.102 billion SCF per day to the domestic market and 2.969 billion SCF per day supplied to the export market.

It said: “This implies that 55.23 per cent of the total gas produced was commercialised while the balance of 44.77 per cent was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.88 per cent for the month of December 2015, that is, 728.65 million SCF per day, compared with the 2015 year-to-date average flare rate of 9.51 per cent, that is, 744.80 million SCF per day. “Total gas supply for the period January to December 2015 stands at 380.45 billion SCF and 1.242 trillion SCF for the domestic and export market respectively. 

“A total of 722 million SCF per day was delivered to the gas fired power plants in the month of December 2015 to generate an average power of about 3,004 megawatts (MW) compared with a 2015 year-to-date average gas supply of 694 million SCF per day and power generation of 2,957 MW.”

http://www.vanguardngr.com/2016/02/oil-firms-flared-n163bn-gas-in-2015/