Nigeria’s gas flares declined to 16.1 billion standard cubic feet (SCF) in April this year, the lowest in six months, largely due to lower oil exploration and gas production activities, analysts say.
Data obtained from the Nigeria Gas Flare Tracker (GFT), a satellite-based technology, shows that Nigeria’s gas flares fell by 41 percent from 27.1 billion SCF in February to 16.1 billion SCF in April this year.
Gas flaring is the burning of natural gas associated with oil extraction. It occurs due to various issues, from market and economic constraints to a lack of appropriate regulation and political will.
This significant drop in gas flares brings a glimmer of hope to Nigeria’s efforts to keep positive momentum in its climate commitment to meet its net-zero emissions target by 2060. However, more efforts need to be implemented to curb gas flaring.
“The decline in flared gas is due to reduced oil production drilling activities,” said Jide Pratt, chief operating officer of Aiona and country manager of Trade Grid.
“However, until we can commercialise or appropriately price gas, the incentive not to flare gas ordinarily will be low,” Pratt said.
Data from the Nigerian Upstream Petroleum Regulatory Commission revealed that the country’s oil production decreased by 23 percent from 1.3 million barrels per day in February to 998,602 bpd last month. Analysts blamed the development on outages at the critical export terminal.
Also, Nigeria’s rig count, which reflects the level of exploration, development, and production activities in the oil sector, fell to 13 in April for the first time in eight months.
As oil extraction declines, gas flaring will automatically decline as the process of oil extraction leads to the discovery of associated gas (flared gas).
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Despite the drop in gas flares, more efforts through regulations need to be implemented to further reduce gas flares. Analysts say the new gas flare regulation by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will help to commercialise flared gas.
“The challenge with associated gas flaring from well-heads under the associated gas re-investment act of 2018, which has now been amended in the 2023 gas flaring, venting, and methane emission regulations, pursuant to sections 105 (2) of the Petroleum Industry Act will enable the NUPRC to collect associated gas from well-heads without payment of commission to the operator,” said Kelvin Emmanuel, energy sector expert and co-founder/CEO at Dairy Hills.
“This is an important development considering that there are 179 flare sites currently releasing 700 million standard cubic feet of natural gas to the atmosphere daily.”
Emmanuel added that the change will be in developing manifolds that can absorb, purify, and process associated gas into different derivatives.
According to a statement by NUPRC, the new gas flaring regulation seeks to reduce the environmental and social impact associated with gas flaring and the venting of natural gas and fugitive methane emissions into the atmosphere.
It also aims to preserve and protect the environment; prevent waste of natural resources, enhance energy transition in Nigeria; create social and economic benefits from gas flaring and venting; and set out the procedure for the Commission to exercise its rights to take gas at flare points in accordance with the Act and all other applicable laws.
“In relation to monetising gas flaring, the Gas Flaring, Venting, and Methane Emission (Prevention of Waste and Pollution) Regulations, 2023, reinforces the right of the federal government to take gas destined for flaring at no cost, and also provides for the sake of such gas to bidders for a fee that would hurt her to not have been gained,” said Joshua Olorunmaiye, team lead/executive associate, energy and natural resources at Bloomfield LP.
