Sunday, September 27, 2020
Home > BUSINESS > Business News > Nigeria Loses N522bn to Gas Flaring

Nigeria Loses N522bn to Gas Flaring

By Mathew Dadiya, Abuja

At least 475.3 billion Standard Cubic Feet (SCF) of oil and gas was flared by oil companies in 2019, costing the Federal Government a total of N522billion loss, an equivalent of $1.

7 billion.

National Oil Spill Detection and Response Agency (NOSDRA) Gas Flare Tracker stated in a report that the flaring occurred in both onshore and offshore sites in the country.

The report noted that the 475.3 billion SCF of gas that was flared in 2019, represented an equivalent of 25.2 million tonnes of carbon dioxide, C02 emissions and was capable of generating 47,500 gigawatts of electricity per hour.

NOSDRA report disclosed that the companies were liable to pay a fine of $1billion, an equivalent of N307billion as penalties for flaring that much quantity of gas.

Specifically, the report noted that onshore oil production sites accounted for 50.

3 per cent of total gas flared in 2019, with 239 billion SCF of gas, translating to a loss of $836.4 million; CO2 emission of 12.7 million tonnes; power generation of 23,900 gigawatts per hour and the country is supposed to collect a fine of $477.9 million from the companies, an equivalent of N146.72 billion.

The report also noted that offshore oil production sites accounted for 49.7 per cent of total gas flared in 2019, with 236.4 billion SCF of gas, translating to a loss of $827.3 million, an equivalent of N253.98 billion; Co2 emission of 12.7 million tonnes; power generation of 23,900 gigawatts per hour.

The offshore firms are expected to pay a fine of $472.7 million, an equivalent of N145.12 billion as penalties for gas flaring.

The N521.9 billion recorded as the amount of gas flared by the oil firms, represented 386.9 per cent or 3.9 times the N134.91 billion budgeted for the Ministry of Power in the 2020 budget and is 57.94 per cent, or more than half of the N900.77 billion budgeted for the Ministry of Defence. The amount is also 8.8 times more than the N58.98 billion budgeted for the Ministry of Aviation; 5.2 times more than the N100.56 billion budgeted for the Ministry of Water Resources; and it represented 75.99 per cent of the N686.82 billion budgeted for the Ministry of Education.

Similarly, the amount of gas flared in 2019 was 3.9 times and 1.2 times more than the N133.99 billion and N441.01 billion allocated to the Ministry of Transportation and Ministry of Education respectively, in the 2020 budget.

In its Monthly Financial and Operations Report for November 2019, released recently, the NNPC noted that total gas supply for the period November 2018 to November 2019 stood at 3.080 trillion SCF out of which 467.37 billion SCF and 1.344 trillion SCF were commercialised for the domestic and export market, respectively.

The NNPC added that gas re-injected, fuel gas and gas flared stood at 1,269.17 billion SCF.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: