Nigeria lost $327.39 million between January and May 2019, as oil and gas companies operating in the country flared 109.13 billion standard cubic feet, SCF, of gas in the five-month period.
This was in spite of the targets set by the Federal Government to end gas flaring in the country.
According to data obtained from the May 2019 Monthly Financial and Operations Report of the Nigerian National Petroleum Corporation, NNPC, the volume of gas flared in the five-month period represented 9.06 percent of total gas produced in the five-month period, which is 1.204 trillion SCF of gas.
The NNPC report noted that in the months of January, February, March, April and May 2019, the oil firms flared 18.3 billion SCF,
21.22 billion SCF, 24.95 billion SCF, 24.82 billion SCF and 19.84 billion SCF respectively.
The average gas price in the period under review was $3 per 1,000 SCF of gas, while the average exchange rate was N306 to a dollar.
According to the report, the volume of gas flared from January to May 2019 represented 21.82 per cent of total non- commercialised gas of 500.19 billion SCF.
Other components of non-commercialised gas included 330.23 billion SCF of re- injected gas and 60.82 billion SCF of fuel gas.
On the other hand, 187.29 billion SCF of gas was utilized as domestic gas, comprising 112.22 billion SCF supplied to the power
sector and 75.1 billion SCF supplied to the industrial sector.
In addition, oil and gas firms exported 516.98 billion SCF of gas, representing 42.9 per cent of total gas produced in the period under review.
In the gas export segment, 9.39 billion SCF of the commodity was exported through the West African Gas Pipeline; 36.92 billion SCF was exported through the Escravos Gas to Liquid project; Natural Gas Liquid/Liquefied Petroleum Gas accounted for 18.16 billion SCF of gas export; while 452.48 billion SCF of gas was exported through the Nigerian Liquefied Natural Gas, NLNG.
The report stated that, “Out of the 221.21 billion SCF of gas supplied in May 2019, a total of 124.29 billion SCF of gas was commercialized consisting of 36.25 billion SCF and 88.04 billion SCF for the domestic and export market respectively.
“This translates to a total supply of 1,294.57 million SCF per day of gas to the domestic market and 2,934.78 million SCF per day of gas supplied to the export market for the month.
“This implies that 56.69 per cent of the average daily gas produced was commercialized while the balance of 43.31 per cent was re-injected, used as upstream fuel gas or flared. Gas flare rate was 8.87 per cent for the month under review, that is, 661.47 million SCF per day compared with average Gas flare rate of 9.25 per cent; that is 725.73 million SCF per day for the period May 2018 to May 2019.”
It added that, “Total gas supply for the period May 2018 to May 2019 stood at 3.051 tillion SCF out of which 466.39 billion SCF and 1.316 trillion SCF were commercialized for the domestic and export market respectively. Gas re-injected, fuel gas and gas flared stood at 1.268 trillion SCF.