Gas Flaring: Total, Communities Sign Pact …As Nigeria Losses $2.5bn Annually To Flaring

In line with Federal Government’s flare out regulations, the French oil and gas giant, Total Exploration and Production Nigeria Limited (TEPNI), a subsidiary of Total Group, has signed a milestone Memorandum of Understanding (MoU) with stakeholder communities for the right of way of the strategic Obite, Ubeta and Rumuji (OUR) gas pipeline.

Signing the MoU in Port Harcourt between Total E&P and the land owners, families and communities from Rumuji, Ndele, and Elele Alimini where the gas pipeline traverse, the company said that the agreement would ensure that stakeholder communities derive optimum benefits from the project to maximize their development potentials.

Deputy Managing Director, Total E & P, Port Harcourt District, Denis Berthelot, who signed for the company, said the OUR Gas Pipeline, a major component of the OML58 upgrade, cannot be realized without the support of the communities, and enlisted their cooperation to make the project succeed.

Berthelot stressed that, “as our strategic and very important partners, the company has put its cards on the table through series of consultations and negotiations with all of you, our host communities, and the conclusion culminates today with this ceremony”, adding that Total E & P was “conscious that the set timeline for this project cannot be achieved without your support” and the validation of the product of our various decisions so that full implementation of the provisions of the agreements could commence.

In their response, the communities thanked Total E & P for providing the opportunity for both parties to firm up a workable agreement to guide the operations of the company while executing the gas pipeline project, and pledged their readiness to support the company in any way possible to ensure that set goals are met, while delivering sustainable development to the impacted communities.

The Tide learnt that the 45.6-kilometre OUR with 42-inch diameter gas pipeline, which is to be constructed by Zakhan Baywood Joint Venture, will facilitate the transport capacity of gas from the OML58 fields to the Nigerian Liquefied Natural Gas facility on Bonny Island in Rivers State for processing and export to foreign markets.

The company said the OML58 upgrade is designed to increase gas production capacity from the current 10.6million standard cubic metres per day, approximately 370million standard cubic feet per day, to 15.6million standard cubic metres per day or 550million standard cubic feet per day, while also increasing oil and condensate output by around 15,000 barrels per day, bringing the total output from the fields to 140,000 barrels of oil equivalent per day.

Industry sources note that Nigeria has flared more natural gas associated with oil extraction than any other country, suggesting that of the 3.5billion standard cubic feet, about 99m  of associated gas produced annually, 2.5billion standard cubic feet, representing some 71m³ or 70 per cent of production capacity is wasted through flaring.

This, according them, has denied the country an estimated $2.5billion annually.

According to Total, the OML58 upgrade is expected to comply with Federal Government’s gas flare out regulations, contribute to meeting the growing demand for gas in Nigeria as well as supply gas feedstock to the Nigeria LNG.

The Tide gathered that the project will also contribute to an improvement in the safety profile of the company, and extend the life of existing facilities while enhancing oil recovery to boost production and increase the nation’s revenue earnings.