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Gas Flaring: FG lost N234bn in 2018 –NNPC

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  • Gas Flaring: FG lost N234bn in 2018 –NNPC

Companies operating in the oil and gas industry in Nigeria flared a total of 282.08 billion standard cubic feet of natural gas in 2018.

In Naira, that represents N234 billion, according to the Nigerian National Petroleum Corporation (NNPC).

The NNPC report revealed that the volume of gas flared in 2018 was slightly lower than the 287.59 billion scf flared in 2017.

The firms, including international and indigenous operators, wasted 31.68 billion scf of gas in January; 27.25 billion scf in February; 26.88bn scf in March; 23.06 billion scf in April; 21.20 billion scf in May and 21.66 billion scf in June.

They flared 21.21 billion scf in July; 22.42 billion scf in August; 20.54 billion scf in September; 20.51 billion scf in October; 23.78 billion scf in November and 21.89 billion scf in December.

With the price of natural gas put at $2.70 per 1,000scf as of Wednesday, the 282.08 billion scf flared translates to an estimated loss of $761.62m or N233.77bn (using the official exchange rate of N306.95/dollar).

Also, the data showed gas supply in Nigeria increased from 2.79 trillion scf in 2017 to 2.83 trillion scf in 2018.

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.