By Yemi Olakitan
According to analysts, Nigeria’s gas flares have decreased by the greatest amount since 2012 due to improved utilisation of the commodity locally. A lull in oil production may also have contributed to this decline.
The volume of gas released by flares is estimated to be 194.1 billion standard cubic feet (scf) according to information obtained from the Nigerian Oil Spill Monitor, which is a division of the Nigerian Oil Spill Detection and Response Agency (NOSDRA).
This new development is assisting Nigeria in recording positive momentum in line with the commitment it made regarding the climate. Nigeria joined other countries at the Conference of Parties (COP26) in Glasgow, Scotland, in November 2021 in an effort to meet its goal of having net-zero emissions by the year 2060.
This is fifty years after the target that was established by the United Nations in the year 2050.
NOSDRA estimates that the total value of the gas that has been flared since Nigeria’s commitment in Glasgow is 679.3 million dollars. This suggests, according to the analysts, that there is room for more gas to be used locally.
According to Kelechi Chidi-Ihuoma, Senior Investment Analyst at Meristem Securities Limited, the fact that there is a lower volume of gas flared off is a good sign.
“Because of the movement to ban the practice of gas flaring, businesses are directing the gas into a pipeline that leads to power plants.
“Gas is the most common source of energy for the plants that can be found in oil fields. According to what she said, “some companies use that gas to generate electricity, and as part of their environmental, social, and governance (ESG) project or their corporate social responsibility, they transmit that electricity to communities that are nearby.”
According to Chidi-Ihuoma, businesses that are unable to find a use for this gas burn it off as waste because there is no infrastructure in place to channel it so that it can be used.
The majority of the gas that is produced in Nigeria is captured for the purpose of obtaining more gas. The recent drop in oil production has resulted in a significant reduction in the amount of gas that has been flared.
According to Janet Ogunkoya, senior research analyst for Tellimer Energy, putting a stop to the practice of gas flaring would require capital expenditure (CAPEX).
“A sizeable amount of CAPEX would be required to have the necessary means to utilise gas in an appropriate manner.”
Flaring gas not only has an impact on the environment but also results in economic losses. This is due to the fact that the gases in question could be utilised locally by power companies and other consumers of wholesale energy, or they could even be exported.
She stated that it was a blessing that energy companies such as Seplat energy were beginning to recognise the economic benefits of capturing gas and processing it for commercial use rather than flaring it.
According to the research analyst, it is obvious that there will be negative consequences in terms of both the economy and the environment.
She made the following statement: “Communities in these areas bear the brunt of the environmental hazard first.” However, when viewed from a more global perspective, the effects of climate change are also quite dismal.
According to Oreoluwa Owolabi, the lead of corporate intelligence at GAS360, Nigeria needs to make investments in its infrastructure in order to get the gas to a point where it is commercially viable.
He stated that this could be used for export or for the construction of pipelines across the country in order to generate electricity. “It is necessary for an effort to be led by the government, and the government has already taken some steps toward achieving a reduction in flaring by the year 2030,” the author writes.
According to Owolabi, this can be used to speed up Africa’s transition to a net-zero energy system, and it would also make more funds available for gas projects, which can help partially finance the development of our infrastructure.
According to what he had said, “accelerating the implementation of gas utilisation projects would increase the decline of gas flaring.”
Nigeria was ranked as the seventh largest gas flaring country in the world in 2021 by the Global Gas Flaring Reduction Partnership (GGFR), which is part of the World Bank. The report was based on data from the 2022 global gas flaring tracker.
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