FG Lost $16tn To Gas Flare In 10 Years - Report
In a report obtained by a correspondent on Monday, it showed that the Federal Government has lost an estimated $16tn to natural gas flaring in 10 years.
The Energy Institute’s 72nd edition of the ‘Statistical Review of World Energy 2023’ disclosed that the amount was lost from 2012 to 2022.
According to a breakdown of the statistics, the upstream and downstream oil and gas firms operating in the country flared the highest amount of gas in 2012, estimated at 12.9 billion cubic metres of natural gas, 9.2 billion cubic metres in 2013, 8.3 billion in 2014, and 7.5 billion cubic metres in 2015.
The flare continuously decreased as the year rolled by, with 7.2 billion cubic metres flared in 2016. Flaring again, increased to 7.5 billion cubic metres in 2017, before falling to 7.3 billion cubic metres in 2018, and then rose to 7.8 billion cubic metres in 2019.
The menace reduced significantly to 7 billion cubic metres in 2020, falling further to 6.5 billion cubic metres in 2021, before resting at 5.3 billion cubic metres in 2022.
The total gas flared by the country in the 10 years under review showed an estimated 86.5 billion cubic metres.
The Hebrew Energy explained that the value for each 1 billion cubic metres of natural gas is worth about $183m, giving an estimated $16tn lost to the menace within the period under review.
The government through former president Muhammadu Buhari had in 2020 expressed commitment to support the United Nations 2050 zero gas emission agenda. Buhari however, said Nigeria would put a final stop to gas emission latest by 2060.
In line with the drive to end gas emission, the Nigerian Upstream Petroleum Regulatory Commission in October, noted that FG had granted 42 firms gas flaring licenses in the 2022 Nigerian Gas Flare Commercialisation Programme auction process.
According to the Chief Executive, the Nigerian Upstream Regulatory Petroleum Commission, Engr Gbenga Komolafe, “The wasteful disposal of natural gas is not only fraught with deleterious health/ environmental consequences but also a major source of resource waste and value erosion to the country.”
He noted that the Nigerian Gas Flare Commercialisation Programme will attract investments, and develop a transparent market mechanism through a competitive procurement process for allocating gas flares, under clear and transparent criteria to competent third-party investors using proven technologies in commercial applications globally.