By Dike Onwuamaeze
Nigerian National Petroleum Corporation (NNPC) has said that Nigeria lost up to $868.8 million, about N173.76 billion to gas flaring in 2014.
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 per cent of the total gas produced in the country in that year. Using the Nigerian Gas Company, NGC’s 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 to 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.
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 per cent 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 per cent 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 per cent of the total gas produced in the subsector.
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 per cent of their total production.
The NNPC ASB stated that “A total of 2.524.27 trillion SCF of natural gas production was reported by 28 Companies. This shows an increase of 8.56 per cent when compared with 2013 production. Of the quantity produced, 2.233 trillion SCF, representing 88.53 per cent of total gas production was utilised, while 289.60 billion SCF was flared.
The report also 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 per cent and 49 per cent 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.