Oil and gas firms operating in Nigeria flared 12.26 billion standard cubic feet (SCF) of gas in September 2021, representing 7.13 per cent of the total gas produced in the country in the month under review, according to data released by the Nigerian National Petroleum Corporation (NNPC).
Using the average gas price of $5.511 per 1,000 SCF, as listed by the NNPC, the flaring of 12.26 billion SCF of gas translates to a loss of $67.56 million. Again, using the Central Bank of Nigeria’s (CBN) exchange rate of N410.46 to a dollar, this represents an equivalent of N27.73 billion.
Specifically, NNPC, in a report on gas production and utilisation, stated that total gas produced in the country in September stood at 171.93 billion SCF, dropping by 8.41 per cent compared with 187.71 billion SCF of gas produced in August 2021.
“Of the total gas produced in the month under review, the NNPC noted that 8.592 billion SCF of gas was utilised as fuel gas”
In percentage terms, at 12.261 billion SCF, the volume of gas flared in September was 0.11 basis points higher than the 7.02 per cent recorded in August; while in terms of volume, the quantity of gas flared in September was 6.94 per cent lower, compared with the 13.176 billion SCF of gas flared in August.
Particularly, at 13.176 billion SCF, the volume of gas flared in August 2021 represented 7.02 per cent of the 187.71 billion SCF of gas produced in the same month.
Giving a breakdown of Nigeria’s gas output and utilisation in September, the NNPC disclosed that Associated Gas (AG) production stood at 106.395 billion SCF, accounting for 61.88 per cent of total gas output in the country, while Non-Association Gas (NAG) accounted for 38.12 per cent of total gas output, with 65.535 billion SCF.
Of the total gas produced in the month under review, the NNPC noted that 8.592 billion SCF of gas was utilised as fuel gas; 67.473 billion SCF was used by the Nigerian Liquefied Natural Gas (NLNG); and 7.32 billion SCF was utilised by the Escravos Gas to Liquid (EGTL) project.
In addition, the NNPC stated that 2.768 billion SCF was utilised for Natural Gas Liquids/Liquefied Petroleum Gas (NGL/LPG); domestic gas sales through the Nigerian Gas Company (NGC) and others, stood at 21.713 billion SCF; while re-injected gas and gas lift make-up stood at 51.53 billion SCF.
As a result, total gas utilised in September 2021, stood at 159.669 billion SCF, representing 92.86 per cent of total gas output in the month under review.
SOURCE: thetidenewsonline.com