Tuesday , February 7 2023
Home / Business / Nigeria Loses N174bn To Gas Flaring — NNPC

Nigeria Loses N174bn To Gas Flaring — NNPC

NNPCNigeria has lost up to about N173.76 billion ($868.8 million) to gas flaring in 2014, according to data obtained from Nigerian National Petroleum Corporation (NNPC).

The NNPC in its Annual Statistical Bulletin (ASB) for 2014, disclosed that oil and gas firms in the country flared 289.6 billion standard cubic feet (scf) of gas, representing 11.47 percent of the total gas produced in the country last year.

Using the Nigerian Gas Company’s (NGC) price of $3 per 1,000 scf of gas at the current exchange rate realities, the flaring of 289.6 billion SCF of gas translated into a loss of $868.8 million, an equivalent of N173.76 billion.

Specifically, the oil and gas companies produced 2.524 trillion scf of gas, utilised 2.235 trillion scf and flared 289.6 billion scf.

Gas utilisation
Below is a breakdown of gas utilization during the period under review, as indicated by NNPC:

· 154.37 billion scf used for fuel;
· 712.3 billion scf sold to third parties;
· 178.447 billion scf sold to NGC;
· 643.81 billion scf was re-injected,
· 11.01 billion scf used as fuel gas to Eleme Petrochemical Limited, EPCL;
· 38.8 billion scf for LPG/NGL feedstock to EPCL;
· 391.37 billion scf for Liquefied Natural Gas, LNG;
· 104.58 billion scf for gas lift.

Flare offenders
According to the ASB, the Joint Venture (JV) companies, comprising the multinational oil companies were the worst offenders in terms of quantity, as they flared 211.836 billion scf of gas, representing 11.2 percent of their total gas production of 2.11 trillion SCF.

Production Sharing Contract (PSC) companies followed as they flared 66.12 billion scf of gas, representing 19.95 percent of their total gas production of 397.58 billion scf.

Sole Risk/Independent oil companies produced 9.71 billion scf of gas, utilised 1.85 billion scf and flared 7.86 billion scf, representing 424.5 percent of the total gas produced in the sub-sector.

Similarly, Marginal Fields companies utilised only 6.79 billion scf of a total of 10.57 billion scf gas produced in the subsector, and flared 3.78 billion scf or 55.7 percent of their total production.

Flaring by companies

Broken down further, specific companies flared:

* Chevron Nigeria Limited, CNL -53.6 billion scf;

* Shell Petroleum Development Company, SPDC – 51.92 billion scf;

* Mobil Producing Nigeria – 42.86 billion scf;

* Nigeria Agip Oil Company, NAOC – 35.79 billion scf;

* Addax Petroleum Development Company – 35.6 billion scf;

* Total Exploration and Production – 22.78 billion scf;

* Total Upstream Nigeria – 18.73 billion scf;

* Esso – 4.517 billion scf;

* Chevron Texaco – 4.43 billion scf;

* Amni Petroleum – 3.87 billion scf of gas.

ASB declaration

The NNPC’s ASB noted: “A total of 2.524.27 trillion scf of natural gas production was reported by 28 companies. This shows an increase of 8.56 percent when compared with 2013 production. Of the quantity produced, 2.233 trillion scf, representing 88.53 percent of total gas production was utilised, while 289.60 billion scf was flared.

Continuing, the report said that total Natural Gas Liquid (NGL), produced in 2014 was 1.327 million Metric Tons, adding that Mobil and NNPC had a share of 51 percent and 49 percent of the quantity respectively.

“A total of 1.272 million Metric Tons was lifted.

Liquefied Petroleum Gas (LPG) production was about 483,529 Metric Tons while lifting was 472,537 Metric Tons,” the NNPC declared.



Check Also

Falola donates over 500 books to KASU library

  Professor Toyin Falola of the University of Texas at Austin has donated books covering …

NDLEA seizes 75kg of Canadian loud at Lagos airport

The National Drug Law Enforcement Agency (NDLEA) said it seized 75.75kgs of cannabis indica, which …

Social Media Auto Publish Powered By : XYZScripts.com