Nigeria’s flared gas has fallen from about one billion standard cubic feet per day (bscf/d) to 750 million standard cubic feet daily (mscf/d). Managing Director of Seplat Petroleum Development Company Plc, Mr. Austin Avuru made the disclosure at the 2016 Business Forum of the Nigerian Gas Association (NGA) in Lagos while presenting a paper titled: ‘Re-evaluating the development of the Nigerian gas industry: A prerequisite for re-energizing and maximizing its potential,’ said power sector reforms, licensing of more independent power projects (IPPs) and the gas master plan (GMP) have resulted in increased potential demand for domestic gas.
He said that at the end of 2015, gas flaring stood at 0.75bscf/d, while domestic consumption, led by the power sector and industries stood at 1.3 billion standard cubic feet per day. Exported liquefied natural gas (LNG) in the same period accounted for 3.05bscf/d, while re-injection and other operational usage amounted to 2.9bscf/d, which brings the total gas utilised daily in the year-end-2015 to 8.0bscf. Avuru said his figures were on information obtained from the Nigerian National Petroleum Corporation’s (NNPC). In his address, Avuru noted that flare penalty of N10/mmscf has proved to be non-effective in discouraging gas flaring in the country, recalling that Nigeria still ranks second in flare volumes accounting for 10 per cent of total global flares in the year 2011 behind Russia. According to the Seplat Boss, 67 per cent of gas-fired power capacity is in Western Delta, relying on Escravos Lagos Pipeline System (ELPS) for feedstock, adding that 45 per cent of feedstock is associated gas that is transported mainly via Trans-Forcados pipeline. He identified pipeline/infrastructural vandalism and theft, and gas pricing as some of the major causes of gas flaring in Nigeria. He added that if checked, about $5 billion could be saved from aggressive gas development yearly.


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