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Tag: gas flaring

  • Nigeria loses N2.5bn annually to gas flaring – BudgIT

    A civic technology organization, BudgIT Nigeria, said on Thursday that Nigeria loses N2.5 billion annually to gas flaring.

    The organization, which is interested in entrenching transparency in government budgets, disclosed this in a statement issued by its Communication Lead, Abiola Afolabi, and made available to journalists in Abuja.

    BudgIT urged the Federal Government to take action against the effects of gas flaring which continued to contribute to Nigeria’s environmental degradation.

    While commending the government on some progress made in the fight against routine gas flaring in the last 20 years, the organization revealed that an analysis carried out by its extractives team showed that the volume of gas produced increased by 91.13 per cent while the volume of gas flared reduced by only 38.06 per cent between 2001 and 2016.

    “This implies that oil companies invested more money in gas production activities and are less concerned about sufficiently investing in technologies and infrastructure to control gas flaring.

    “What Nigeria has at the moment is potential for the consumption of un-flared gas. Therefore, the supply framework, infrastructure and market systems necessary for un-flared gas to reach its end users’ needs must be collectively and sustainably developed by all stakeholders,” the statement said.

    BudgIT urged the government to explore existing technologies and strategies to reduce the amount of gas flared into the atmosphere.

     

     

     

  • ‘Release N98b penalty for gas flaring’

    ‘Release N98b penalty for gas flaring’

    The Host Communities of Nigeria Producing Oil and Gas (HOSCON), have called on the federal government to release the N98 billion gas flaring penalty money owed.

    The National Chairman of HOSCON, Mike Emuh, explained that the release of the money would help to sustain existing peace in the region.

    The communities also asked the National Assembly to pass the Petroleum Industry Bill (PIB) before embarking on Christmas break.

    Speaking in Abuja yesterday, Emuh said: “It is an international law that $3.5 fine should be paid by oil companies for every 1,000 standard cubic feet of gas flared.

    “The law requires the fund to be paid to the host communities for environmental degradation, pollution and plundering of their communities as a result of gas flaring but the oil companies pay the fine to the Department of Petroleum Resources (DPR).

    “On receipt of the money, the DPR pay the money to the Central Bank of Nigeria, CBN, who later transfer the money to the Federation Account.This is an aberration.”

    On the PIB,  Emuh said: “We are asking the National Assembly and especially lawmakers from our region to pass the bill before they embark on Christmas break”.

    He also called on the Niger Delta Avengers to suspend the planned hostilities and destruction of oil and gas assets in the region in the interest of peace and development.

  • CSOs push for N3.3tr gas flaring penalty fund to host

    CSOs push for N3.3tr gas flaring penalty fund to host

    Members of the Civil Society Organizations (CSOs) Monday made a case for the International Oil Companies (IOCs) payment of the outstanding N2.3trillion gas flaring penalty funds to host communities in the Niger Delta region.

    They also pushed for the payment of about N1trillion gas flaring penalty fund that the multi-nationals have already paid which remained hitherto trapped in the Central Bank of Nigeria (CBN).

    The National Coordinator, Center for Peace and Environmental Justice (CEPEJ), Comrade Sheriff Mulade and  Faith Nwadishi of the Independent Service Delivery Monitoring Group, made this known in Abuja during the media briefing on security and environmental challenges in the Niger Delta and Nigeria.  

    Mulade said that CEPEJ has packaged a conference for 7th and 8th November, 2017 in Benin-City, Edo State to examine the rising tide in environmental degradation, and avoidable perpetuation of poverty in the Niger Delta through the oil companies activities, persistent gas flaring, loss of adequate life and agitations in the region and Nigeria.

    He also noted that despite the federal government’s flag-off  of the Ogoni clean up several months ago, it has remained a mere political promise.

    He appealed to the government that for it to sustain the existing peace in the region, the Ogoni axis of Rivers State, it should expedite action on environmental remediation and the clean-up it promised. 

    According to him, this will bring about sustenance of peace and development in the region; also reduce tension and further crisis in the area.

    On the gas flaring penalty fund, Mulade said that: “We are aware that there is a penalty paid by these multi-nationals. We are also aware of the three percent being paid to NDDC by the IOCs to develop the Niger Delta.”

    He said although the CSOs are already urging the federal government to pay the fund, it is against the channelization of the funds through any commission.

    Mulade asked the government to pay the money directly to the communities instead of using any commission as an intermediary that may divert the fund to compensate political allies.

    His words: “So those funds, we are aware and as a civil society we are also putting machinery in place see how we can tackle government towards those funds so that the funds can be released to communities directly, not through a commission. This is because all the commissions are political commissions to compensate their political friends.”

    Speaking, Nwadishi expressed surprise that Nigerians were only talking about payment of N1 trillion gas flare penalty stalled in the apex bank whereas the IOCs still have an outstanding N2.3 trillion gas flaring penalty to pay to the communities. 

    According to her, Nigeria has not been sincere in the implementation of its gas flaring policy and has resorted to shifting the gas flare end date and rate because the World Bank has set a date for exit from gas flare.

    She described gas flaring as a negation of the law because a court sitting in Benin- City, has already declared gas flaring as illegal.

    Nwadishi said that: “At the end of the day, we as a country, we are not sincere about our gas flaring policy. Over the years, we have shifted the goal post. Today, we say we want to end, tomorrow; we want to end gas flaring. 

    “Now there is a new date 2020 initiative to end gas flaring in Nigeria because of the World Bank initiative that says reduces gas flaring by 2030. For three years we change our goal post. 

    “You know that there was a judgment in Nigeria that gave judgement to a community that says gas flaring is illegal.  Gas flaring is supposed to be illegal because a judgment in Benin had already said that gas flaring was illegal. Meanwhile, we still continue to flare gas. 

    “We have over N2.3 trillion is yet to be paid. And because of the money that was paid. You know the government economic recovery plan. Now you know that part of the seven big win plans is to use gas to generate energy. But we don’t have a clear plan on how that is going to be. 

    If you read the government recovery growth plan it is just about using gas. You have not gone to this budget to say how much of this gas we are going to save to put into our budget. And they talk about renewable energy because if you say you are going to use gas to reduce fossil fuel it means that you are going to use renewable energy. “So, some of these things we need to also begin to interrogate as media and civil society. So gas flaring is as bad as this and that is why this conference is happening in Benin. 

    “We will have two days to have that conference and talk about these issues; the issues of environmental injustice, the issues of gas flaring will be one of the issues that will be on the table.”

  • Ending the menace of gas flaring

    SIR: Gas flaring involves a deliberate open-air burning of natural gas. Admittedly, global environmental impact is due to the burning of associated or solution gas, which produces carbon dioxide (CO2) and methane (CH4) with a resultant increase in the concentration of green- house gases (GHG) in the atmosphere.  Basically, this has a substantial impact on our health and environment. Hence the World Bank had encouraged producers of oil and gas to stop gas flaring by 2030.

    Of note, the effect of gas flaring includes: contamination of both surface and ground water by benzene, xylene, toluene, and ethylbenzene; contamination of soil by oil spill and leaks; increased deforestation; economic loss;

    environmental degradation, amongst others. More so, an alarming effect of gas flaring is its contribution to climate change.

    Ultimately, gas flaring depletes revenue which should be channeled towards nation building. No doubt it is a branch of the corrupt practices militating against development in the oil and gas sector; though distinct from other common but mighty branches. Particularly, the type exposed recently by the House of Representatives ad-hoc committee investigating allegedly missing $17 billion crude oil and liquefied natural gas revenue that uncovered $15 billion unremitted revenue into Federation Account. The aforesaid missing fund is believed to have been stolen and diverted to a foreign destination.

    It is reported that gas flaring in Nigeria increased tremendously with oil extraction in the 1960s. Of note, the wasted resources could have been utilised as a potent source of energy to meet the increasing demand for electricity and improve power generation capacity in Nigeria.

    The first regulatory framework aimed at promoting anti-gas flaring policies in Nigeria was the Associated Gas Reinjection Act, 1979. In ensuring that the target of the World Bank is met, Nigeria’s Gas Flaring Prohibition Bill 2017 serves as a legislative panacea to end gas flaring in the country. It also depicts Nigeria’s commitment to ensuring that gas flaring is brought to a minimal level in line with the 2020 flare out deadline by the Department of Petroleum Resources (DPR); the Paris Agreement on Clean Environment and World Bank 2030 flare out deadline.

    Based on the foregoing, Nigeria’s gas sector will soon experience far reaching transformation as the menace of gas flaring highlighted above will be a thing of the past. But we do hope for a speedy passage of the Gas Flaring Prohibition Bill 2017 and not have another PIB-tragic trajectory!

     

    • Ogunjobi Michael O.

    Lagos.

  • Nigeria to end gas flaring by 2020, says Ngige

    Nigeria has developed a roadmap that is expected to end the nation’s gas flaring and save billions of dollars for the country by the year 2020, the Minister of Labour and Employment, Senator Chris Ngige, has said.

    The country is also putting in place a  Sovereign National Green Bond to raise special funds from the capital market that would be used for the green project, especially renewable energy, as well as afforestation projects that would help reduce emissions in line with national determined contributions.

    Addressing the 106 session of the International Labour Conference in Geneva, Ngige said Nigeria remains committed to building on security, inclusive growth and sustainable development through what he described as the African agenda, 2063.

    He said  part of the challenge facing the country borders on how to attract the required resources to finance the recurring national budget deficit, occasioned by the volatilities in the global oil market and insurgency, especially in the north eastern part of the country.

    To achieve this, Ngige said the country would be needing the assistance of the international community, pointing out that such assistance is critical to the nation.

    He said: “Nigeria expresses her commitment to the Green Initiative as climate change poses the greatest threat to the world, especially Africa. The adverse effects can be found everywhere in our ecosystem which have manifested in the difficulties associated with the generation of sustainable income, employment opportunities, eradication of poverty and the promotion of better livelihood form the citizenry.

    “A manifestation of the adverse climatic condition in my country(Nigeria), was the recent outbreak of cerrebro-spinal meningitis, which resulted in the death of over 1000 people predisposed by the extreme heat waves which assisted an uncontrollable menegitidis bacteria multiplication.

    “We therefore agree with the Director-General that the mitigation of climate change is the most paramount element in shaping the present state and future of condition of work.

    Ngige said Nigeria is a signatory to the Paris agreement, since the 71st United Nations General Assembly, and shall contribute to the implementation of the initiative. Indeed, combating climate change is one of the cardinal objective of the President Muhammadu Buhari led administration in Nigeria.”

    He said the administration`s commitment to fighting climate change is crystalised in the increasing and substantial budgetary allocations to this sector over the last two years.

    It is noteworthy that even before the Paris agreement of 2015, Nigeria has put in place various measures to tackle the challenges of climate change.

  • Nigeria to end gas flaring by 2020 – Ngige

    Nigeria to end gas flaring by 2020 – Ngige

    The Minister of Labour and Employment, Chris Ngige, on Thursday said Federal Government has developed a roadmap that would enable country to end gas flaring by 2020.

    He said the government has also put in place a Sovereign National Green Bond to raise special funds from the capital market for green projects especially renewable energy and afforestation.

    The projects, the minister said would help reduce emissions in line with national determined contributions.

    Addressing the 106 session of the International Labour Conference in Geneva, Switzerland, Ngige said the government is committed to building on security, inclusive growth and sustainable development through what he described as African 2063 agenda.

    He said: “Nigeria expresses her commitment to the Green Initiative as climate change poses the greatest threat to the world especially Africa. The adverse effects can be found everywhere in our ecosystem which have manifested in the difficulties associated with the generation of sustainable income, employment opportunities, eradication of poverty and the promotion of better livelihood form the citizenry.

    “A manifestation of the adverse climatic condition in my country was recent outbreak of cerebrospinal meningitis which resulted in the death of over 1,000 people.

    “We therefore agree with the Director General that the mitigation of climate change is the most paramount element in shaping the present state and future of condition of work.

    “Nigeria is a signatory to the Paris agreement since the 71st United Nations General Assembly and shall contribute to the implementation of the initiative. Indeed, combating climate change is one of the cardinal objectives of the President Muhammadu Buhari led administration in Nigeria.

    “The administration`s commitment to fighting climate change is crystalised in the increasing and substantial budgetary allocations to this sector over the last two years. It is noteworthy that even before the Paris agreement of 2015, Nigeria has put in place various measures to tackle the challenges of climate change.”

  • Why gas flaring must be stopped, by Utomi

    Why gas flaring must be stopped, by Utomi

    A developmental economist, Prof. Pat Utomi, has said the rate of cancer will increase in the Niger Delta unless the rate of gas flaring is checked.

    Utomi spoke at the 2nd mid-year national conference of the Isoko Development Union (IDU) women’s wing at the weekend, with a theme; “Building Healthy People and Healthy Planet,”.

    He said: “There is no challenge that cannot be overcome by women, because they have the milk of human kindness, therefore they are critical to development and if well educated, they can trigger up development when they apply their natural strength.”

    Utomi, who was honoured with the “Isoko Prestigious Award,” said there were enough resources in the world, but sadly there were high levels of poverty because of failure of leadership.

    He explained that the starting point in escaping from poverty is proper education for the children and women, stressing that women are a very important factor in the education of the children, especially in their moral up brining.

    The President of IDU, Mrs. Caroline Usikpedo-Omoniye, canvassed for social inclusion of women and 50/50 affirmative action on women participation in governance, noting that if implemented, it will boost development and also empower the womenfolk.

  • Nigeria loses $2.5bn to gas flaring annually, says Senate

    Nigeria loses $2.5bn to gas flaring annually, says Senate

    …Gas flaring a national embarrassment, says Saraki

     

    The Senate Wednesday said that the country loses $2.5 billion annually to gas flaring.

    The upper chamber also said that gas flaring is contributing to air pollution, heat, rainforest damage and climate change.

    Chairman, Senate Committee on Gas Resources, Senator Bassey Albert Akpan, stated this at a public hearing on Gas flaring (prohibition) bill 2017.

    Akpan noted that Nigeria has estimated 188 billion cubic feet of proven natural reserve making the country the ninth largest concentration in the world.

    According to him, “Due to unsustainable exploration practices coupled with lack of gas utilization infrastructure, we flare more than 75 per cent of the gas produced and re-injects only 12 per cent to enhance oil recovery.”

    He said that it is estimated that more than two billion standard cubic feet of gas is currently being flared in the country annually.

    The figure, he said, is the highest in any member-nation of the Organisation of Petroleum Exporting Countries (OPEC).

    He added that consequently, Nigeria accounts for about 19 per cent of the total amount of gas flared globally.

    Akpan noted that in the over 1,000 oil fields located across the country, the towering flames resulting from gas burning seems to villagers as an inevitable consequence of oil production.

    He recalled that the first attempt to address gas flaring was made in 1969 through the Petroleum (Drilling & Production) Regulation which merely required that oil producing companies submit Gas Utilization Plan (GUP) five years into the commencement of production.

    This, he said, was followed by the Associated Gas Rejection Act of 1979 and later the Associated Gas Rejection Regulation, 1985 made to specify conditions for issuance of certificate for continued gas flaring.

    Senate President, Abubakar Bukola Saraki who inaugurated the public hearing described the issue of gas flaring in the country as a matter of great national embarrassment

    Saraki who was represented by the Deputy Senate Leader, Senator Bala Ibn Na’Allah noted that Nigeria has no reason to continue to ‘flare this precious resource God has endowed us with.”

    He said that the seeks to make provisions for the prohibition of the flaring and venting of natural gas in any   oil   and gas production   operation   in   Nigeria.

    Saraki said that gas flaring is as old as the discovery of crude oil in Nigeria.

    “While it remains   a global   environmental   malaise   with   attendant environmental consequences, we must move with the rest of the world to seriously put an end to it. Gas flaring is not inevitability.

    “Whilst statistics may not be accurate, the quantity of gas flared in Nigeria exceeds over 40% of the gas flared annually across Africa which amounts to about $7billion in waste.

    “Apart from economic waste being a consequence of gas flaring, flared   gas   is also   known   to   contain   toxic   substances   which   cause respiratory diseases and air pollution, leading to depletion of the ozone layer, ultimately having an adverse effect on weather and climate.

    “Only God knows how many of our citizens have lost their lives as a result of gas flaring.

    “We are yet to ascertain how many are suffering irreparably from the aftermath of gas flaring.

    “What we know is that if we have not been flaring gas, our people in the oil producing States will have fared better in health and in life expectancy.

    “Like other countries blessed with gas, we would have   had   more power generating   capacity   and   attained   greater industrialization of the country,” Saraki said.

    He added that the 8th Senate recognizes that gas flaring is not just an environmental issue but that it is a developmental issue, a justice issue, a human rights issue and an opportunity issue.

    He said, “To us the continued drain on our revenue that gas flaring represents is no longer affordable. We are therefore committed to bring to an end this obnoxious business practice.

    “We are committed to once and for all prohibit gas flaring to save our people’s lives, save our environment   and   change   the   corporate   behaviour   and   attitude   of businesses towards environmental protection.

    “Today, we are attempting to use the instrumentality of the legislature to drive that process.”

  • Saraki Tasks GLOBE Nigeria on Climate Change Bill

    Saraki Tasks GLOBE Nigeria on Climate Change Bill

    Senate President, Abubakar Bukola Saraki, Monday tasked the Global Legislators Organisation (GLOBE) Nigeria, to tackle the challenges of climate change, gas flaring and others affecting sustainable development goals in Nigeria.

    The Global Legislators Organization (GLOBE) is an international organization comprising national parliamentarians from over 80 countries committed to developing and overseeing the implementation of laws in pursuit of sustainable development.

    According to a statement by the Special Assistant to the Senate President on Print Media, Chuks Okocha, Saraki urged the members of the organisation not to relent in their effort to address the challenges posed by climate change, gas flaring and sustainable development in Nigeria through the provisions of purposeful legislations.

    Saraki urged the group to fashion out legislations that would address issues of climate change as is the situation all over the world.

    He said: “A lot of pronouncements have been made by the government, and by the last National Assembly without legislative backing and we will just continue to see this as mere pronouncements. Am aware that as legislators that meet and discuss issues on Climate, we are the first country in West Africa and am happy with the kind of report the network is receiving.

    “We want Nigeria to become the major hub of Globe Worldwide, to provide leadership in Africa.  Some of the things we see here, even in the sub-Sahara Africa, countries have gone so far in some of these legislations on the Climate  Change and sustainable developments.

    “Am very happy of what I heard today on the close work between the Senate and the House of Representatives to see that Climate Change is addressed through  legislative processes.

    “In Nigeria, we need to know that we have lots of work to do and I think that it can only be done with an organisation like this which is non-political or seeking the interest of one party, so that we can do what is best for our country”, Saraki said.

    President of the Globe Nigeria, Senator Bukar Abba Ibrahim, appealed to the Senate President  to support the Climate Change Bill which will be introduced concurrently soon at both chambers of the National Assembly.

    Ibrahim said:  “You may recall our unique and desperate situation regarding the effect of Climate Change on our people. Very recently, Nigeria recorded more than 300 deaths as a result of meningitis outbreak; this epidemic cannot be unconnected to our worsening climate and heat waves.

    “As a purpose-driven caucus of the Nigerian parliament, we have a responsibility to protect our people through effective legislation and oversight on climate-induced diseases, migration, conflicts and food insecurity.

    “Climate Change is one of the flagship issues the GLOBE Organization has been advocating support for since its establishment and we will be happy to pull some political support from you for the upcoming Climate Change Bill”, he stated.

    Other bills lined up for the Senate President’s support, he said,  includes the Gas Flaring Prohibition Bill, Access to Clean Energy Services and Technology Bill as well as an intervention on natural capital and sustainable development.

    Senator Ibrahim assured the Senate President that the vision with which he established GLOBE Nigeria would be pursued with utmost dedication and commitment.

    He said that the GLOBE Nigeria would  ensure that funds approved and released to the group  is judiciously used and in the spirit of engaging with only the things that will uphold the Nigerian legislature and associated social impact on the lives of the people.

     

  • Fed Govt loses $1b yearly to gas flaring

    Fed Govt loses $1b yearly to gas flaring

    The  Minister of State for Petroleum Resources, Dr.  Ibe Kachikwu yesterday said the Federal Government  loses between $500million and $1billion yearly to gas flare data falsification in the country.

    He spoke at the Gas Competence Seminar in Abuja, which had: Towards ending gas flaring and unlocking gas potential in Nigeria as its theme.

    According to him, the Federal Government will set up an independent tracking mechanism next year to ascertain the actual volume of gas that was flared in the country, as the commodity is being priced in the United States (U.S.)dollar.

    Kachikwu said: “There is an urgency of yesterday to drive the policy that would enable us get out of gas flaring. I hear you talking about 10 per cent non-compliance, meaning that we have achieved a 90 per cent factor. My feeling is that these numbers are very mistaken.

    “Beginning next year, we will be putting up an independent tracking mechanism, not relying on figures from the IOCs (International Oil Companies)and from DPR (Department of Petroleum Resources), to find out really what is the flare volume. My feeling is that there are a lot of management of those figures to suit the cap of the penalties that are being charged.

    “My take is that we lose over half a billion to a billion of government revenue looking at the basis of the present penalties position. Nobody is effectively monitoring the volume, so when you actually go for the real effect of what is flared, in terms of statistics, it is much higher than that figures. However, we must appreciate the efforts that have been done in the past, efforts to increase penalties among others.”

    The minister also noted that the marginal rise in the price of crude oil in the past few days was not an indication of an imminent boom in the cost of the commodity in the nearest future.

    He explained that the decisions by the Organisation of Pteroleum Exporting Countries (OPEC) and non- members of the cartel to cut down production may have warranted the marginal rise in crude prices, but stressed that further increase in prices could not be guaranteed as this may not last.

    Kachikwu said: “Now, as good as all these may be, the reality is that in the world, the era of high priced oil is gone. In fact, it is going to take a lot of work to sustain the $60 per barrel price and it is going to take a lot of discipline and concerted effort as well.”

    He emphasised the need for the country to commercialise its gas resources, stating that crude oil alone cannot sustain the economy.

    According to him, ensuring gas commercialisation, utilisation and transportation would go a long way in buoying the economy and wondered why Nigeria was still facing electricity problems despite producing a lot of gas.

    Earlier in his address, the Minister of Power, Works and Housing, Babatunde Fashola, said Nigeria’s perennial power problems were man-made and not as a result of technical challenges.

    He stated that in the last couple of days, gas flaring and most especially, sabotage had deprived most of the country’s critical gas power plants of gas, thereby, leading to a significant decline in power supply all over Nigeria.