The Nation Newspaper

Tag: flare

  • Nigeria’s gas flare rate dips to 12%

    Nigeria’s gas flare rate dips to 12%

    Nigeria gas flare rate stands at 12.00percent, the Nigerian National Petroleum Corporation (NNPC) Monthly Financial and Operations Report for August has revealed.

    The report which was released yesterday in Abuja showed that the 12.00 per cent gas flare rate which translates to 919.73mmscfd  compared to 10.03 per cent for the preceding month of July 2017.

    According to the NNPC statement,  Nigeria was among countries with highest gas flare rates, saying that a number of Clean Development Mechanism (CDM) projects aimed at appropriate gas utilisation have improved the country’s standing in this regard.

    The report gave an average gas flare rate of 10.15 per cent, which is 734.56mmscfd, for the period from August 2016 to August 2017.

    The monthly report also showed that despite enormous challenges facing the downstream sub-sector of the oil industry, the NNPC has continued to maintain adequate products supply nationwide.

    It attributed the success story to strategic interventions by the Corporation in respect of diesel supply, revamp and re-commissioning of critical pipelines and depots across the country, as well as robust engagement with critical downstream stakeholders such as Major Oil Marketers Association of Nigeria, (MOMAN), Nigerian Association of Road Transport Owners (NARTO), Petroleum Tanker Drivers Association of Nigeria (PTDAN) as well as the Independent Petroleum Marketers Association of Nigeria (IPMAN).

    The NNPC lamented that pipeline breaches stood at 70 points for the month of August 2017 out of which 62 pipelines were vandalised.

    The strategic Port Harcourt-Aba pipeline was singled out as a major culprit, accounting for 46 vandalised points (or 74 per cent of total recorded cases).

    To tackle the challenge, the oil firm, in collaboration with the Federal Government, has continued to engage members of various host communities to address the issue.

    The NNPC Report also listed security synergy with International Oil Companies (IOCs) as part of the steps taken to stem oil and gas sabotage. This, it said  involved the deployment of a structured and holistic security apparatus in operational areas.

    The NNPC report further revealed that 950.67 million litres of white products were distributed and sold by the Petroleum Products Marketing Company (PPMC) during the period under review. Although the figure was lower than the 1,121.92 million litres in the preceding month, it was nontheless enough to ensure adequate supply of petroleum products.

    A further breakdown of the figure indicated that petrol distributed during the period under review was 814.02 million litres, kerosene supply stood at 59.92 million litres, while 76.73 million litres of diesel was also distributed to the domestic market.

  • Shell: Insecurity, others inhibiting gas flare out

    Insecurity, inadequate funding and lack of commitment from joint venture (JV) partners stalling the plan to end gas flaring in Nigeria, Shell Petroleum Development Company Limited (SPDC) has said.

    The firm in its latest journal, Shell in Nigeria, stated that since 2000, it has worked with the Federal Government to end the flaring of associated gas but that security and funding, among others, have been hindering that goal. To acheive this goal, the problems must be addressed, it added.

    Shell said: “Further progress in ending continuous gas flaring will be heavily dependent on the security situation. Sustained commitment from all JV partners is also crucial. Funding challenges have resulted in delays to tow major associated gas gathering projects that were expected to deliver an additional 35 per cent reduction in flared gas by 2014-15.”

    It said in many oil fields, gas is produced with crude oil when it is brought to the surface. It recalled that  SPDC’s first production in the 1950s and 1960s, had little demand or market for associated gas. Consequently, the majority of it was burned off – a process called flaring. But in recent years, demand for gas in Nigeria and other countries has grown while the technology to harness, liquefy and export gas has come of age.

    It  however, said since 2000, all new Shell JV facilities have been designed to include no continuous flaring of associated gas. It noted that in parallel, a multi-year programme was implemented to install equipment for capturing associated gas from older facilities. As a result, flaring volume from its JV facilities was reduced by 75 per cent between 2002 and 2013 and flaring intensity by about 60 per cent over the same period, but due to increase in production last year, volume and intensity of flared gas increased, it stated.

    “Increased levels of oil production in 2014, combined with delays to new projects coming on stream, meant that volumes of flared gas increased by 12 per cent over the year and flaring intensity by nine per cent. The increased frequency of pipeline sabotage over the last two years has resulted in numerous unplanned production shutdowns. These in turn have impacted the performance of gas processing systems, which operate more efficiently with uninterrupted production, and has constrained our progress on reducing flaring intensity,” it added.

    Shell said despite the challenges, the overall trend in flares reduction is positive and it continues to invest in major gas gathering projects that will drive further reduction.

    The company noted that it monitored ambient air quality levels around its flare sites since 1998 and regularly reports the results to government authorities, as required by Nigerian regulation.

     

  • Shell: Insecurity, others inhibiting gas flare out

    Shell: Insecurity, others inhibiting gas flare out

    Insecurity, inadequate funding and lack of commitment from joint venture (JV) partners stalling the plan to end gas flaring in Nigeria, Shell Petroleum Development Company Limited (SPDC) has said.

    The firm in its latest journal, Shell in Nigeria, stated that since 2000, it has worked with the Federal Government to end the flaring of associated gas but that security and funding, among others, have been hindering that goal. To acheive this goal, the problems must be addressed, it added.

    Shell said: “Further progress in ending continuous gas flaring will be heavily dependent on the security situation. Sustained commitment from all JV partners is also crucial. Funding challenges have resulted in delays to tow major associated gas gathering projects that were expected to deliver an additional 35 per cent reduction in flared gas by 2014-15.”

    It said in many oil fields, gas is produced with crude oil when it is brought to the surface. It recalled that  SPDC’s first production in the 1950s and 1960s, had little demand or market for associated gas. Consequently, the majority of it was burned off – a process called flaring. But in recent years, demand for gas in Nigeria and other countries has grown while the technology to harness, liquefy and export gas has come of age.

    It  however, said since 2000, all new Shell JV facilities have been designed to include no continuous flaring of associated gas. It noted that in parallel, a multi-year programme was implemented to install equipment for capturing associated gas from older facilities. As a result, flaring volume from its JV facilities was reduced by 75 per cent between 2002 and 2013 and flaring intensity by about 60 per cent over the same period, but due to increase in production last year, volume and intensity of flared gas increased, it stated.

    “Increased levels of oil production in 2014, combined with delays to new projects coming on stream, meant that volumes of flared gas increased by 12 per cent over the year and flaring intensity by nine per cent. The increased frequency of pipeline sabotage over the last two years has resulted in numerous unplanned production shutdowns. These in turn have impacted the performance of gas processing systems, which operate more efficiently with uninterrupted production, and has constrained our progress on reducing flaring intensity,” it added.

    Shell said despite the challenges, the overall trend in flares reduction is positive and it continues to invest in major gas gathering projects that will drive further reduction.

    The company noted that it monitored ambient air quality levels around its flare sites since 1998 and regularly reports the results to government authorities, as required by Nigerian regulation.

    “SPDC monitoring data shows that air quality around our flare sites complies with these standards barring occasional operational issues (such as when gas needs to be flared for safety reasons). These standards are equivalent to international air quality standards followed in the European Union, United States and those set by the World Health Organisation (WHO).

    “SPDC recognises the importance of addressing local communities’ perceptions and concerns about flaring, in addition to complying with regulations. For this reason, consultation with community and civil society representatives is an integral part of the environmental impact assessments (EIAs) conducted for all major projects,” it added.

  • Niger Delta Petroleum Resources wins Global Gas Flare Award

    The  Niger Delta Petroleum Resources Limited has been declared the winner of the “Global Gas Flare Reduction Excellence Award.”

    In a statement, the oil and gas industry regulator, Department of Petroleum Resources (DPR), expressed its appreciation on the recognition of the indigenous petroleum firm.

    It said the achievement was more remarkable as the Niger Delta Petroleum Resources Limited prepares to celebrate its 10th anniversary.

    DPR said: “It is a further testimony of Nigeria’s progress in its effort to strengthen indigenous capacity in adhering to international best practices while exploiting our natural resource.

    ‘’We commend the relentless efforts of the management and staff of Niger Delta Petroleum Resources Limited in ensuring gas flare reduction in their Ogbele gas field project, in line with government’s flare down policy, which has led to this global recognition.

    “We rejoice with them and acknowledge their excellent achievements as being the first indigenous company with a fully integrated oil and gas operation across the entire value chain of the Nigerian oil and gas sector.’’

    It continued: “The Department of Petroleum Resources will continue to provide needed support and guidance to all operators in an effort to encourage optimal productivity of their respective assets in line with global standards, as this will ensure a positive economic growth in Nigeria and sustainable development in the sector.’’

    Niger Delta Petroleum Resources  would be conferred with the award by the Global Gas Flaring Reduction Partnership – a World Bank Group –  between September 9 and 10, 2015 in the Russian Federation.

  • Every gas flare site is a crime scene, says Nnimmo Bassey,

    Every gas flare site is a crime scene, says Nnimmo Bassey,

      Executive Director, Health of Mother Earth Foundation (HOMEF), Nnimmo Bassey, speaks to Seun Akioye on gas flaring in the Niger Delta. 

    As an environmentalist, what have been the most horrid effects of gas flaring that you have seen in your campaigns?

    Gas flaring is a raw sore on the conscience of this nation. It is dehumanizing to communities and should be seen as a crime against nature as well. The impacts of gas flaring are many and severe. The lightest of the impacts that is glaring in the communities where these flames of hell roar is that the corrugated metal roofs in the communities corrode rapidly due to acid rain caused by the mixture of nitrous and sulfur oxides in the fumes with moisture in the atmosphere. This places economic pressures on the locals who have to contend with frequent roofs replacement or repairs.

    Routine gas flaring is a big insult on our people. You just need to imagine living in a community with those toxic fires burning non-stop for decades, roaring noisily, banishing the night and yet the community stays without electricity.

    Why is it difficult for the government to implement the laws on reduction of gas flares by the multinational oil companies?

    The Associated Gas Reinjection Act of 1979 is not about reducing routine gas flaring, but about stopping the act. Right from 1984 when the Act came into force, those who engage in routine gas flaring have been committing crimes. In fact, every gas flare site is a crime scene. That Act has not been repealed. It is still in force.

    The law requires that associated gas should be re-injected or harnessed for utilization. Where associated gas is to be flared, the oil company is required to obtain a permit from the responsible minister and to pay a fine for the objectionable act. But most importantly, the permit or fine come only after the company has presented an acceptable plan to stop the flaring at the specific sites. The Act never anticipated reckless and open ended flouting of its requirements as is currently the case.

    The situation now is that the oil companies are simply running amok, completely unrestrained. Notice that in the past the government used to set deadlines for stoppage of gas flaring. That is no longer the case today. The convenient cover under which the companies persist in this atrocious act is that they are making plans to use the gas in power plants. The truth is that this is largely a cover. A high ratio of gas used in power plants in the country are from natural gas fields and are not gas associated with crude oil extraction.

    The government has been unable to face this situation squarely because we are running a mono-product economy the government is tied to the apron strings of the oil companies. The government is so unconcerned about this obnoxious act that it provides the oil companies sufficient reason to ignore the crime also. We say this because the companies have been complaining that the government is not stepping up to the plate as a joint venture partner and keeps reneging on making necessary counterpart funds available. This is scandalous. It speaks very poorly of the government and of the nation. It sentences our people to avoidable harm.

    Do you believe Nigeria can make any appreciable impact in tackling this issue especially with the non passage of the PIB?

    The PIB does not offer any solution to the problem of gas flaring. It is the same old story. It will allow the scam to persist at the pleasure of whoever is the responsible minister. That is the sad truth. The Gas Flaring bill passed by the previous Senate had more teeth than the provisions of the pending PIB.  In fact, the Gas Reinjection Act of 1979 was more serious about stopping gals faring than the PIB as it stands now. The PIB only says that a date for stoppage of flaring will be as agreed by the “minister” after the PIB comes into effect. Nothing could be more lax. The oil companies must be laughing at us.

     

     

  • Gas flare

    Gas flare

    NIGERIA’s status as a global leader in flaring of associated petroleum gas is probably as well known as its dithering, half-hearted attempts at ending the scourge generally known to be a source of global warming is legendary.

    The picture of the humongous quantum of gas being flared was recently presented by The Guardian of the United Kingdom in its edition of May 31. According to the newspaper, the petroleum industry currently spews toxic orange flares – the equivalent of the UK’s annual gas use in every three months from its two million barrels daily oil output. Quoting the Nigerian National Petroleum Corporation (NNPC), the newspaper also reported that the Oil Majors – ExxonMobil, Shell and ChevronTexaco between them flared 23.5 billion cubic feet of gas in January alone.

    Noteworthy also is the report by this newspaper on September 24, quoting former Head of State, retired General Yakubu Gowon as revealing that over 460 billion standard cubic feet of gas – which if processed and exported, could have fetched $2 billion – are also flared annually.

    The persistence of the practice deemed “illegal” by the Federal Government since 1984, despite the stiff penalties can be explained by three factors. The first is inadequate penalty which explains the readiness of the oil companies to pay fines.

    The second is the continuing neglect by the Federal Government to put in place policies to promote investment as well as encourage utilisation of the abundant gas – factors which explain the constant shifting of the deadlines for ending the flares.

    The third factor is the absence of discipline and the inability of the Federal Government to muster the political will to push for an end to the practice 28 years after it first resolved to end it.

    The issue certainly goes beyond Nigeria’s claims to having the seventh largest gas reserves in the world. As it is, the government continues to delight in showcasing the proven reserves of 187 trillion cubic metres, or even the so-called unproven reserve also estimated at 600 trillion cubic metres, and the illusion that it confers. While the government is at it, it pretends about the more pertinent challenge – the issue of converting the abundant endowment into wealth for the nation’s development.

    Now, the imperative to end the flaring of associated gas is one that can no longer wait. It remains unthinkable that a nation said to be in dire need of gas to fire its power plants, and for which domestic utilisation tends to zero, would settle for the wasteful path. Equally horrendous is that the practice, with its deleterious impacts on the environment, particularly on the flora and fauna, has been allowed to endure for so long.

    The issue goes beyond drawing more revenue into the government coffers; the imperative to save the environment for the incoming generations dictates that the nation does something about the practice – fast. It seems about time the nation shed one out of its many notorious reputations – the one relating to the emission of toxic greenhouse gases.

    As for claims that the in-coming Petroleum Industry Bill (PIB) would address the practice, such optimism is neither reassuring nor borne by the facts of our recent experience. While the passage of the bill may well be the beginning of the long, difficult road to change the face of the industry in terms of the attitude to gas investments, it would be simplistic to suggest that the desired changes are certain just on account of the PIB becoming law.

    What we expect from government is to blaze the trail in gas development. We expect to see more action in the area of greater partnership with investors in the provision of vital infrastructure to boost both domestic and industrial gas utilisation. We need upstream gas investments alright, particularly in the Liquefied Natural Gas sector; however, the nation’s long-term interest would be better served when investments are anchored on domestic self-sufficiency.