- 15.835 BCF flared in the month
The Nigerian petroleum industry players were unable to find economic use for massive 73 billion standard cubic (BCF) of gas produced from the nation’s oil mining fields in the month of February, leading to increased resource waste in the period.
According to industry performance report published by the Nigerian National Petroleum Corporation (NNPC), the 73 BCF of gas was 35.4 percent of the total gas volumes produced in the upstream segment of the industry in the month.
The group spokesman of the corporation, Dr. Kennie Obateru, stated that NNPC published the 67th edition of its Monthly Financial and Operations Report (MFOR) for February 2021 in keeping with its commitment to transparency and accountability.
However, the report indicated that despite the rising call for positioning gas to lead the nation’s economic development and revenue growth in the face of rapid global energy transition, the local capacity for harnessing and utilizing gas has remained below production parity.
According to the industry MFOR for February, the nation’s capacity for both domestic consumption and processing for export failed to fully absorb the 206.05 BCF of gas produced in February.
“In terms of natural gas offtake, commercialization and utilization,” NNPC stated, “out of the 206.05 Billion Cubic Feet (BCF) produced in February 2021, a total of 133.06 BCF was commercialized consisting of 40.15 BCF and 92.91 BCF for the domestic and export market respectively.”
According to the report, the industry supplied 1,433.75 Million Standard Cubic Feet Per Day (mmscfd) of gas to the domestic market; and 3,318.25 mmscfd to the export market for the month.
“This implies that 64.48% of the average daily gas produced was commercialized while the balance of 35.52% was re-injected, used as upstream fuel gas or flared.
“Gas flare rate was 7.67% or 565.52 mmscfd for the month compared with average gas flare rate of 7.12% or 529.20mmscfd for the period of February 2020 to February 2021.”
From the figures, flare rate in the month increased by 36.32 mmscfd in the month when compared to year to date average. Actual rise in flare volume in the month stood at 1.02 BCF.
The Oracle Today reports that Nigeria has floated a number of policies and programmes for gas capture and commercialization, including the national flare gas commercialization programme, national gas expansion programme, and the Nigerian gas master-plan.
However, commercial incentives for private investments in realizing the programme objectives have failed to attract sizeable commitments while the nation’s hazy fiscal climate has also kept investors waiting for clarity.