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Report: Nigeria is losing 300 billion pounds in 7 months

The burning of gas in the Nigerian oil fields caused heavy losses to the national economy, estimated at 300 billion Nigerian naira. As the country burned 225.1 billion cubic feet of gas during the period between January and July 2020, which is the burning that oil experts say is a necessity to vent the oil fields, which are usually associated with natural gas extraction processes.

The report of the Economic Environment and Development Study – issued by the Nigerian Environment Agency – revealed that the monetary value of the quantities of gas burned in the international market amounted to 787.7 million US dollars (or about 299.33 billion naira), and the study indicated that it was necessary to benefit commercially from these gas emissions.

This comes against the background of the huge losses Nigeria incurred in oil revenues due to the emerging coronavirus (Covid-19) pandemic, which led to a decline in the volume and prices of crude oil sales.

The report also indicated that the environmental cost of burning gas in Nigeria amounted to 94 million dollars (about 35.7 billion naira) annually, while the flared gas resulted in the equivalent of 12 million tons of carbon dioxide emissions.

Another report in the energy supplement in the popular Nigerian newspaper “Energy Vanguard” stated that, based on official government data, the equivalent of 225.1 billion cubic feet of gas that was burned by oil and gas companies in the first seven months of 2020 was able to 22,500 GWh of electricity generation in Nigeria.

Informed sources told Vanguard in its supplement issued this week that the oil companies responsible for the gas flares are expected to pay total fines of $ 450.1 million, equivalent to 171.04 billion naira, but there is no information in the report indicating that they have paid any fine for burning gas in Previous periods, which cost the country several billions of dollars.

It is noteworthy that the process of burning natural gas in the oil fields takes place during the oil extraction process, as it is accompanied by the exit of large quantities of associated gas that the oil pipelines cannot absorb, or because there are no pipes at all.

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