Oil & Energy
Oil Firms Flare N106bn Gas In Three Months
Oil and gas firms operating in Nigeria’s onshore and offshore oilfields flared 73 billion standard cubic feet (SCF) of gas in three months, between January and March 2022, translating to a loss of $255.7 million to the country, an equivalent of N106.2 billion.
According to gas flare data released by the National Oil Spill Detection and Response Agency (NOSDRA), this represented a decline of 19.2 per cent in both volume and value, compared to the 90.4 billion SCF of gas, valued at $316.4 million (|N131.4 billion), flared in the same period in 2021.
The report of the oil spill tracking and reporting agency further noted that the 73 billion SCF of gas flared between January to March 2022 was equivalent to carbon dioxide emissions of 3.9 million tonnes and has power generation potential of 7,300 gigawatts hours of electricity.
In addition, the report stated that the defaulting companies are expected to pay penalties of $146.1 million, an equivalent of N60.68 billion, noting, however, that the majority of the fines are never collected.
In contrast, the report noted that in the period, January to March 2021, the 90.4 billion SCF of gas flared was equivalent to 4.8 million tonnes of carbon dioxide emissions; has power generation potential of 9,000 gigawatt hours of electricity; while the companies are liable to a fine of $180.8 million, about N75.09 billion.
Giving a breakdown of the gas flared in the three months period of 2022, NOSDRA explained that companies operating onshore flared 43.1 billion SCF of gas, valued at $150.9 million, about N62.67 billion, liable for the payment of penalties valued at $86.2 million, an equivalent of N35.8 billion; was equivalent of 2.3 million tonnes of carbon dioxide emissions and power generation potential of 4,300 gigawatt hours of electricity.
Specifically, NOSDRA reported that the onshore companies flared 19.14 billion SCF, 14.03 billion SCF and 9.94 billion SCF of gas in January, February and March 2022, respectively.
In contrast, offshore companies, the report noted, flared 29.9 billion SCF of gas valued at $104.8 million (N43.53 billion); penalties payable at $59.9 million (N24.88 billion); equivalent to 1.6 million tonnes of carbon dioxide emissions and power generation potential of 3,000 gigawatts hours of electricity.
In particular, NOSDRA stated that offshore companies flared 10.83 million SCF, 13.09 billion SCF and 6.01 billion SCF of gas, respectively, in January, February and March 2022.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
