Gas Flaring Increased by 17.5% Last Year – NNPC

gas flaringGas is flared off from Petroleos Mexicanos offshore platforms producing oil in the Gulf of Mexico. Photographer: Susana Gonzalez
  • Gas Flaring Increased by 17.5% Last Year – NNPC

The total volume of natural gas flared by oil and gas companies in the country rose by 17.46 per cent year-on-year to 287.59 billion standard cubic feet in 2017.

Latest data obtained from the Nigerian National Petroleum Corporation on Monday showed that gas supply last year only increased by 8.1 per cent to 2.79 trillion scf.

In 2016, 2.58 trillion scf of gas was supplied to the market, while 244.84 billion scf was flared by the oil companies.

The NNPC data showed that 24.77 billion scf of gas was flared in January; 20.42 billion scf in February; 21.47 billion scf in March; 20.50 billion scf in April; 21.75 billion scf in May, and 19.90 billion scf in June.

In the second half of the year, the country recorded the highest volume of gas flared in December at 31.88 billion scf, up from 26.24 billion scf in November; 24.24 billion scf in October; 25.53 billion scf in September, and 28.51 billion scf in August.

Out of the total gas supply of 2.79 trillion scf last year, 391.95 billion scf and 1.23 trillion scf were commercialised for the domestic and export markets, respectively, while 1.17 trillion scf was used for re-injection as fuel gas and flared.

“For the period of January to December 2017, an average of 1.08 billion scfd of gas was supplied to the domestic market, comprising of an average of 668.08 million scfd or (62.07 per cent) as gas supply to the power plants and 408.26 million scfd or (37.93 per cent) as gas supply to industries,” the corporation said.

In January, the Minister of Finance, Mrs. Kemi Adeosun said the Federal Government planned to make gas flaring more costly for companies that had escaped the payment of billions of dollars despite being fined.

In the “legal framework for the gas flaring penalty, it was drafted as a charge. A charge is tax deductible,” Bloomberg quoted Adeosun to have said in an interview.

“So, what do the international oil companies do? They flare; they pay the charge on which they get tax relief. That’s just bad drafting,” she stated.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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