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Economy | Oil & Gas

Gas Flaring: A Never-Ending Dark Tunnel

Feb 18, 2020   •   by   •   Source: Proshare   •   eye-icon 906 views

Tuesday, February 18, 2020 / 11:25 AM / By CSLResearch /  HeaderImage Credit: Generon


According to satellite data from Nigeria's environment ministry, oilcompanies in the country flare over 313.0mscf of gas annually which ultimatelyresults into 16.5m tonnes of CO2 emitted into the atmosphere. In a similarfashion, World Bank's Global Gas Flaring Reduction Partnership (GGFRP) ranksNigeria as the 6th largest gas flaring country globally. Gas flaring in Nigeriahas been a perturbing problem over the past years since the commercialexploration of crude oil started in the country. This comes despite theofficial banning of gas flaring in Nigeria in 1984. We recall that Nigeria seta deadline of 2020 to eliminate routine gas flaring while President MuhammaduBuhari commissioned the Nigerian Gas Flare Commercialisation Program (NGFCP).


Yesterday, Local media sources reported that the FederalGovernment has shortlisted 200 investors to bid for gas flare sites afterevaluating statement of qualification submitted by the interested companies.This was announced by the Department of Petroleum Resources (DPR) even as itstated only 45 gas flare sites are up for auction as part of the first phase ofthe NGFCP. According to the Director for DPR, Mr Sarki Auwalu, the departmentreceived expression of interest from 800 investors but decided to trim the listdown to 200 on the basis of capacity and quality.


We recall the Nigeria LNG Limited (NLNG) was establishedin 1989 to harness Nigeria's vast natural gas resources to produce LiquefiedNatural Gas (LNG) and Natural Gas Liquids (NGLs). The company is on thearrowhead of Nigeria's efforts at curbing gas flaring. According to thecompany, it has helped reduce Nigeria's flaring profile from 65.0% to below25.0%. However, Nigeria remains among the top gas flaring countries in theworld.


Gas flaring has been a severe menace particularly in theNiger Delta, causing several economic and health losses for its citizens. Oneconomic losses, the Federal government continues to lose potential revenuefrom gas flared. According to London-based "On Our Radar", Nigeria lostpotential income estimated at US$770.0m (N281.1bn) to gas flaring in 2016. Theagriculture ecosystem of the Niger Delta has been severely damaged. Due toincreased soil temperature, crop yield has also been affected with many landsnow barren. Furthermore, water bodies are now black while rainfall in the areais also black destroying many homes. The black water bodies have destroyedfishing potentials while burning bushes and lands have forced animals to desertthe forests in the area.


The health of citizens residing in communities prone togas flaring has also been severely impacted. Gas flaring has been linked tocancer and lung damage as well as neurological and reproductive problems whichhave become prominent among pregnant women and newborns in the region.Furthermore, the rising spate of gas flaring which has worsened the economicsituation of affected villages has led to development of insurgency andsecurity instability. Popular terror groups like Movement for Emancipation ofthe Niger Delta (MEND) and Niger Delta Avengers (NDA) destroy oilinfrastructure and kidnap expatriates working on oil installations.


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Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

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