Says N197 Billion lost to Gas Flaring of 215 9 Billion Standard Cubic feet in 2018

 Adds that Nigeria is the 6th Largest Gas Flaring in the World

By Henry Umoru

Senate

ABUJA- THE  Senate, yesterday raised alarm that the huge revenue loss due to unrelenting Gas flares in Nigeria stood at over N197bn following  data obtained from the Nigerian National Petroleum Corporation (NNPC) that Oil and gas firms operating in the country flared a total of 215.9 billion standard cubic feet (SCF) of natural gas.

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According to the Senate, gas flaring is the burning of natural gas that is associated with the extraction of crude oil, and according to data obtained from the World Bank Global Gas Flaring Reduction Partnership 2018, puts Nigeria as the sixth largest gas flaring country globally and the second largest in Africa after Algeria.

Subsequently, the Senate directed its Committee on Gas, Chaired by Senator James Manager (PDP, Delta South), to monitor the implementation of the Nigerian Gas Flare Commercialization Programme (NGFCP) as well as Review and recommend upwards penalty for non-compliance in line W1th global best practices.

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The Senate also urged the Federal Government of Nigeria to intensify efforts to diversify from crude Oil to Natural Gas production.

Resolutions of the Senate yesterday were sequel to a motion, entitled, ” The need to monitor the Nigerian Flare Commercialization Programme towards ending Gas Flaring by 2020, sponsored by Senator Betty Jocelyn Apiafi, PDP, Rivers West and Co- sponsored by 47 Other Senators.

Presenting the motion, Senator Apiafi said that ” the Senate notes that gas flaring is the burning of natural gas that is associated with the extraction of crude oil, and according to data obtained from the World Bank Global Gas Flaring Reduction Partnership 2018, Nigeria is the sixth largest gas flaring country globally and the second largest in Africa after Algeria;

“Also notes that there are long standing laws against the flaring of associated natural gas in Nigeria which action has indeed been illegal since 1984, though most of the laws are subjective. Section 3(1) of the Associated Gas Re-injection Act, CAP A25 LFN 2004 states that ”….no Company engaged in the production of oil and gas shall after lst January, 1984 flare gas produced in association with or without the permission in writing of the minister.”

According to her, the Upper Chamber is “Concerned about the huge revenue loss due to unrelenting Gas flares in the country. Flaring of associated natural gas is quite simply burning money. In 2018 alone, according to data obtained from the N igerian National Petroleum Corporation (NNPC), Oil and gas firms operating in the country flared a total of 215.9 billion standard cubic feet (SCF) of natural gas amounting to a revenue loss of over N197bn (One Hundred and N inety Seven Billion Naira). Nigeria has the largest Natural Gas Reserve in Africa and ninth (9th) largest in the world. Nigeria’s gas reserves are about three times the value of her crude oil reserves with a value of around 202 trillion cubic feet (TCF) of proven Natural gas reserves but despite having the largest gas reserves in Africa, only about 25% of those reserves are being produced or are under development today.”

She said that the ” Senate is also  concerned that In the Niger Delta region of Nigeria, gas flares have been wreaking havoc across communities since the early 1960’s. Gas flaring results in the release of methane which is accompanied by other greenhouse gases that account for about 50% of all industrial emissions in the country and 30% of the total C02 emissions which are harmful to humans, the economy and the environment. The failure of the Government to enforce laws against gas flaring has exposed people living around nearby flare sites to various respiratory disorders, harmed the environment through air pollution, destroyed farmlands, damaged crops and cost the country trillions of N aira in revenues;

“Aware that Natural Gas is a fossil nature resource. Natural gas is a versatile, clean-burning, and efficient hydrocarbon that is used in a wide variety of applications when harnessed properly such as a source of energy for heating, cooking, electricity generation, fuel for vehicles and as a chemical feedstock in the manufacture of commercially important organic chemicals;

“Also aware that gas flaring contributes to climate change which has serious implications to both Nigeria and the rest of the world. The burning of fossil fuels mainly coal, oil and gas produce greenhouse gases which results led to warming up (global warming) the world and is projected to get much worse particularly for developing countries. Acid rain has also been linked to the activities of gas flaring. The effect of this on the environment, farmlands and humans is worrisome;

“Corrugated roofs, in the Niger Delta region where gas is flared have been corroded by the composition of the rain that falls as a result of flaring. Acid rains also acidify lakes, streams and damages vegetation. In most cases there is no vegetation in the acres surrounding the flare due partly to the ttemendous heat that is produced and the acid nature of the soil PH. This result in crops having stunted growth. notched plants and withered young crops. The health implications on humans include neuxological, reproductive and developmental effects leading to increased cases of deformities in children, Lung damage, skin problems and cancer;

“Further aware that Natural gas as an alternative to crude oil has so many recompenses. Natural gas to the cleanest burning fossil fuel, it’s safer and easier to store, it’s an extremely reliable energy supply source, it causes less damage to humans and the environment, it’s widely available and in abundance in Nigeria. ngena 3 current gas production stands at 253.06 billion cubic feet (bcf), translating to an average daily production of 8,163.58 million cubic feet per day (mmcfpd);

“Commends the recent ”Nigerian Gas Flare Commercialization Programme” (NGFCP), launched m 2016 by the Federal Government of Nigeria through the Nigerian National Petroleum Corporation (NNPC). The programme aims to provide a commercial approach for the elimination of routine gas flares by 2020. The strategy 15 to achieve social environmental and economic impacts in the Niger Delta region by mobilizing private sector capital towards ’gas flare capture’ projects,

“Worried that gas flaring has been on the rise since the Nigerian Gas Flare Commercialization Programme (NGCFP) was launched in 2016 according to data from the National Oceanic and Atmospheric Administration (NOAA) satellite. The NOAA which collected the data has recorded infrared readings since 2012. The data points to the year 2018 having more gas flares burning more intensely than has been seen for the past five years in Nigeria which evidently led to the country’ s 2018 rank of sixth (6th) global flarer moving up from the seventh (70th) position the year before;

“Also worried that lack of enforcement of the laws on gas flaring in previous years 15 thwarting the Governments’ projected deadline of 2020 to end routine associated gas flaring. The year 2019 is coming to an end and there seems to be a lack of commitment to enforce the laws on gas flaring still, so it is therefore very necessary for afflrmative action to be taken through fines, penalties and alternative technology investments to achieve the 2020 date; and

“Further worried that if the Nigerian Gas Flare Commercialization Programme is not Implemented by 2020 Nigeria will be left behind as global trends indicate that crude oil is becoming obsolete and there is no better time than now to intensify efforts in Natural gas production.”