Oil and gas companies operating in the country flared a total of 85.81 billion standard cubic feet of natural gas in the first three months of the year, causing the country an estimated loss of N72.41bn.
Data obtained by our correspondent from the Nigerian National Petroleum Corporation showed that 31.68 billion scf of gas was flared in January; 27.25 billion scf, in February; and 26.88 billion scf in March.
With the price of natural gas put at $2.76 per 1,000scf as of July 16, 2017, the 85.81 billion scf flared translates to a loss of $236.84m or N72.41bn (using the official exchange rate of N305.75/dollar).
The NNPC said, “Out of the 254.68 billion scf of gas supplied in March 2018, a total of 152.60 billion scf of gas was commercialised, comprising 40.52 billion scf and 112.08 billion scf for the domestic and export market, respectively.
“This implies that 59.92 per cent of the average daily gas produced was commercialised while the balance of 40.08 per cent was re-injected, used as upstream fuel gas or flared. Gas flare rate was 10.55 per cent in March 2018.”
The corporation said the total gas supply for the period of March 2017 to March 2018 stood at 3.115 trillion scf, out of which 454.83 billion scf and 1.363 trillion scf were commercialised for the domestic and export market, respectively.
It said gas injected, fuel gas and gas flared in the period stood at 1.297 trillion scf.
The NNPC said, “Out of the 1.307 billion scfd of gas supplied to the domestic market in March 2018, about 854.40 million scfd of gas, representing 65.37 per cent was supplied to gas-fired power plants while the balance of 452.69 million scfd or 34.63 per cent was supplied to other industries.
“About 3.236.82 billion scfd or 89.52 per cent of the export gas was sent to Nigerian LNG Limited in March.”
In May, the Group Managing Director, NNPC, Dr Maikanti Baru, said the country was expecting over $25bn worth of investments in the gas sector.
It also stated that policies that would put an end to the flaring of gas had been developed by the corporation, adding that gas flaring in Nigeria had reduced significantly from 25 per cent to 10 per cent in the last decade.