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Senate Decries $2.5bn Annual Loss to Gas Flaring

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  • Senate Decries $2.5bn Annual Loss to Gas Flaring

The Senate has decried the loss of over $2.5bn to the flaring of estimated two billion standard cubic feet of flared gas annually.

It said this accounted for about 19 per cent of the total volume of gas flared globally.

This was made known at a one-day public hearing on the Gas Flaring Prohibition Bill, 2017 organised by the Senate Committee on Gas in Abuja on Wednesday.

The Chairman of the committee, Senator Bassey Akpan, in his opening remarks, said statistics showed that Nigeria was leading in gas flaring among the member nations of the Organisation of Petroleum Exporting Countries.

He, however, noted that Nigeria’s estimated 188 billion cubic feet of proven natural gas reserve made it the country with the ninth largest concentration of the natural resource in the world.

Akpan added that the absence of reliable data had made it difficult to gauge the magnitude of the damage caused by gas flaring in the country.

According to him, due to unsustainable exploration practices coupled with the lack of gas utilisation infrastructure, Nigeria flares more than 75 per cent of the gas produced and re-injects only 12 per cent to enhance oil recovery.

“This has reportedly costs Nigeria over $25bn annually as well as contributing to air pollution, heat, rainforest damage and climate change. In the more than 1,000 oil fields located across the country, the towering flames resulting from gas burning now seem to the local villagers as an inevitable consequence of oil production,” Akpan said.

President of the Senate, Bukola Saraki, who declared the hearing opened, described gas flaring as an embarrassment to the country.

Saraki, who was represented by the Deputy Majority Leader, Senator Ibn Bala Na’Allah, stated that there was no reason why the country should continue to flare gas in this age and time, considering its short and long-term consequences.

He stated, “The issue of gas flaring in Nigeria is a matter of great national embarrassment. We have no reason to continue to flare this precious resource God has endowed us with. This bill, therefore, seeks to make provisions for the prohibition of the flaring and venting of natural gas in any oil and gas production operation in Nigeria and for other matters connected therewith.

“Gas flaring is as old as the discovery of crude oil in Nigeria. While it remains a global environmental malaise with attendant environmental consequences, we must move with the rest of the world to seriously put an end to it. Gas flaring is not inevitable.

“Whilst statistics may not be accurate, the quantity of gas flared in Nigeria exceeds over 40 per cent of the gas flared annually across Africa, which amounts to about $7bn in waste. Apart from economic waste being a consequence of gas flaring, flared gas is also known to contain toxic substances, which cause respiratory diseases and air pollution, leading to the depletion of the ozone layer, ultimately having an adverse effect on weather and climate. Only God knows how many of our citizens have lost their lives as a result of gas flaring.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

NNPC Supplies 1.44 Billion Litres of Petrol in January 2021

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The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.

The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.

NNPC said the 1.44 billion litres translate to 46.30 million litres per day.

Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).

The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.

Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.

For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.

Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.

Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.

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Economy

NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021

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The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.

This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).

The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.

It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.

NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.

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Economy

Nigeria’s Food Inflation Hits 22.95 Percent in March 2021

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Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.

Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.

Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.

On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.

Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.

Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.

The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.

However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.

Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.

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