Zero gas flaring aspirations linger as low investment hampers process

Nigeria’s aspirations to achieve zero gas flaring in the foreseeable future may end up being only a pipe dream owing to Government low investment and perceived lethargy in fulfilling her own end of the contract agreement in the joint ventures concerned industry experts have said.

With Oil firms in Nigeria, especially the international oil companies (IOCs) still engaged in flaring substantial amount of the gas resources in the country and the absence of the required infrastructure to monetise natural gas Nigeria, still have a long way to go concerned stakeholders have warned.

Energy experts say the issue of gas flaring will continue to impede the nation’s prospect in benefiting optimally from export of gas and pose health and environmental challenge until government who is part owners of all the joint ventures commits huge investments in infrastructure to checkmate this menace.

Kareem Jubril Adedayo, an energy expert with Ecobank says tackling gas flaring demands government and private sector collaboration which will focus on policy and incentive for gas producers and pipeline operators. With a solid agreement between the two, we can begin to anticipate the much needed investment in the sector which will in turn achieve the year 2020 zero gas flare aspiration.

Organisation of Petroleum Exporting Countries (OPEC) in its 2015 statistical report indicated that Nigeria produced and estimated 86,325.2 million standard cubic feet of gas and flared 10,736.8 million standard cubic feet in 2014.

A 2014 Annual Statistical Bulletin (ASB) of Nigeria National Petroleum Corporation (NNPC) indicate that Joint Venture companies comprising the multinational oil companies in terms of quantity flared 211.836 billion SCF of gas, representing 11.2 per cent of their total gas production of 2.11 trillion SCF. Production Sharing Contract (PSC) companies followed as they flared 66.12 billion SCF of gas, representing 19.95 per cent of their total gas production of 397.58 billion SCF.

Government has to contribute to the investment that is required to reduce gas flaring says Wumi Iledare, Professor of Petroleum Economics and Director of Emerald Energy Institute, University of Port Harcourt, Nigeria

Iledare opines that Government need to do better management of resources that is the only way to bring gas flaring to zero level stressing that Nigeria cannot afford to shut down every plant producing gas in its bid to achieve zero level of gas flaring.

According to him, “the amount of infrastructure required to use in achieving zero gas flaring is very significant. With adequate investment we can move to zero flaring.

He however disclosed that Nigeria have done close to 80 percent effort to checkmate the issue of gas flaring. “Nigeria has done well. We have not come to zero level of gas flaring. I think we are below 20 percent now when it come s to gas flaring because of the so many projects that is in place”, he said.

Ajugwo Anslem, an energy researcher and environmentalist observes the issue of gas flaring is an area that Nigerian government has not enforced environmental regulations effectively because of the overlapping and conflicting jurisdiction of separate governmental agencies governing petroleum and the environment as well.

He is worried that government continues to pay lip service to the issue of gas flaring without considering how oil exploration and exploitation processes create environmental, health, and social problems in local communities near oil producing fields.

KELECHI EWUZIE