Reps lament loss of $14.298bn to gas flaring in Nigeria

Members of the House of Representatives on Wednesday expressed overwhelming support for the enactment of like framework that will halt the loss of estimated sum of $14.298 billion to gas flaring in Nigeria.

According to records presented to the House by Johnson Agbonayinma (PDP-Edo), Nigeria which is rated as the second country with largest gas pollution in the world, flares over 17.2 billion m3 of natural gas per year in conjunction with the exploration of crude oil in the Niger Delta.

“This high level of gas flaring is equal to approximately one-quarter of the current power consumption of the African continent. It is sad that government for over five years does not know the actual volume.

“DPR figures showed over $850 million was lost to gas flaring in 2015 alone. According to the NNPC, Oil and Gas firms flared a total of 244.84 billion standard cubic feet of natural gas in 2016. There is a lot of management of figures flared by IOCs and DPR to suit the cap of penalties being charged for gas flaring.

“The Deputy Director and Head, Upstream (DPR), said that the level of gas flaring has led to a loss of 3,500MW of electricity and about $400 million carbon credit value,” he said, while leading the debate on the motion which seeks to ‘Call the Ministry of Petroleum Resources, Department of Petroleum Resources and International Oil Companies to stop gas flaring which is harmful to the economy.’

The lawmaker who emphasised the need to ascertain Federal Government’s readiness towards the actualisation of the 2020 exit date for gas flaring, urged the House to amend relevant Act of Parliament by raising the $3.5 penalty per 1000SCF of gas flared by oil companies, in order to serve as deterrent to erring operators.

“Gas flaring is the burning of natural gas that is associated with extraction of oil, and according to data obtained from the World Bank, Nigeria ranks second among countries that are the largest gas flaring nations in the world, as the country emits over $4 billion worth of gas annually,” Agbonayinma explained.

While noting that the oil companies have refused to comply with the directive till date, the lawmaker called for investigation and prosecution of government officials found culpable of sabotaging government’s efforts to curb glass flaring in the country.

Agbonayinma expressed worry that gas flaring results in the release of methane which is accompanied by other greenhouse gases that account for about 50 percent of all industrial emissions in the country and 30 percent of the total C02 emissions which are harmful to humans, the economy and the environment as the failure of the Government to enforce the laws against gas flaring has exposed humans to various respiratory disorders, harmed the environment and cost the country over N3 billion in revenues over a five year period.

“Conversion of gas that is currently flared into cash is not just about penalties, there is need to provide a conducive legal and regulatory environment, and also the infrastructure to take the gas harnessed to end users which is obtainable in other climes where 90% of associated gas is used or re-injected into the ground, rather than flared.

“The figure from the Department of Petroleum Resources (DPR) that gas flared in 2015 alone was capable of generating about 3,500 MW of electricity or an equivalent of three trains of Liquefied Natural Gas (LNG), representing a loss of over $1 billion revenue or over 60 million barrels of oil equivalent,” the Edo lawmaker stressed.

To this end, the House mandated the joint committee on Gas Resources. Petroleum Resources (Upstream) and Petroleum Resources (Downstream) to liaise with Federal Ministry of Petroleum Resources and DPR on government’s policies and regulatory rules towards actualizing the exit date of 2020 for gas flaring in Nigeria and report back to the House within eight weeks for further legislative action.

KEHINDE AKINTOLA, Abuja