Nigeria recorded a loss of 33 billion standard cubit feet of natural gas in the first two months of the year as a result of gas flare by both International Oil Companies, IOCs, and National Oil Companies, NOCs operating in the country.
Data from state oil company, Nigerian National Petroleum Corporation, NNPC showed that 17.53 billion scf of gas was flared in February, while 15.51 billion scf was flared in March.
Nigeria’s gas flare rate was 7.67 percent in February (i.e. 565.52 million standard cubic feet per day), compared to 7.73 percent in January (i.e. 554.01 million scfd).
A 1000scf of natural gas is put at $3.93 per 1,000scf as of Wednesday.
The report comes amidst global campaigns and efforts by mostly international oil firms to to cut carbon emission, and go green by investing in renewable energies.
According to the report, of the 206.05 billion scf produced in February, 133.06 billion scf was commercialised- 40.15 billion scf for domestic market, and 92.91 billion for export market.
An average of 64.48 percent gas produced was commercialised while the balance of 35.52 percent was either re-injected, used as upstream fuel gas or flared.
In January, a total of 223.55 billion scf of natural gas was produced, translating to an average daily production of 7,220.22 million scfd.
Out of the total gas output in January, a total of 149.24 billion scf was commercialised, consisting of 44.29 billion scf and 104.95 billion scf for the domestic and export markets respectively.
This indicates that 67.15 per cent of the daily gas output was commercialised while the balance of 32.85 percent was re-injected, used as upstream fuel, or flared.
According to the revised payment regime for gas flaring, while oil firms producing 10,000 barrels of oil or more per day will pay $2 per 1,000 standard cubic feet of gas, those producing below10,000 barrels of oil per day will pay a gas flare penalty of $0.5 per 1,000 scf.
Royal Dutch Shell subsidiary in Nigeria, SPDC is one of those that over the years, have come under intense criticisms, and have faced law suits by hosts communities as a result of environmental pollution.
As a result, the IOC has lost thousands of dollars as compensation payment to affected communities in the country.
SOURCE: sweetcrudereports.com