In spite of the Federal Government’s pledge to the United Nation to attain net zero by 2060 and gas monetization policy, Nigerian National Petroleum Company Limited (NNPCL) flared 100 per cent of their gas output in September. It therefore earned no revenue from gas during the period.
It was note from the available data that Nigerian Petroleum Development Company and its Joint Venture partners, Seplat Petroleum Development Company and NPDC-Chevron Nigeria, flared 100 per cent of their entire gas out put of 106 million standard cubic feet of gas and 7 million standard cubic feet of gas respectively.
It was also gathered that Newcross Exploration and Production Limited and Belema Oil flared about 96 per cent and 75 per cent of their 112 million standard cubic feet of gas and 21 million standard cubic feet of gas, respectively.
This is coming at a time the country is battling a cash crunch due to a drop in its oil revenue on the back of a significant decline in oil production which dipped to below 1 million barrels per day, the lowest in 32 years. The government has been relying heavily on borrowing to finance its activities, as its debt reached an all-time high of N42.84 trillion in June.
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The NNPCL gas production and utilization data did not state why the firm had flared the whole of its gas production for the month. The firm’s spokesperson, Garba Deen did not also respond to both phone calls and messages sent to him.
Mobil emerged as the highest gas producer in the month under review with a total output of about 25 BSCF of gas, out of which it utilized 23 BSCF of gas and flared 1.6 BSCF of gas.
Shell Nigeria followed with a total gas output of about 25 BSCF of gas, utilizing 24 BSCF and flaring 0.5 BSCF; Chevron Nigeria produced about 24 BSCF of gas, out of which it utilized 23 BSCF and flared 0.2 BSCF of gas and Total Energies Nigeria produced about 23 BSCF of gas, out of which it utilized 22 BSCF and flared 0.6 BSCF of gas.
The federal government had declared 2020 and beyond a decade of gas and projected gas as its transition fuel.
Professor and Economist at Onabanjo University, Ago-Iwoye, Ogun State, Tella Sheriffdeen registered his dissatisfaction with the way government agencies flout the law.
“These government agencies like to do whatever they like because there is no punishment. If government agencies cannot obey the law, then, what do you expect from private organizations,” he queried.
He further stated that it is unfortunate because the same NNPCL would refuse to pay anything into the account claiming that they are private entities as if the natural resources belong to an individual.
“NNPCL should be punished according to the rule of law,” he said.
According to the national oil firm, about 106 BSCF of the output was associated gas, while about 43 BSCF was non-associated gas.
Under the total gas utilized segment for September, the NNPCL stated that 9 BSCF of gas was used for fuel gas; 48 BSCF was utilized by the Nigerian Liquefied Natural Gas; 8 BSCF was used by the Escravos Gas to Liquid project, and 2 BSCF was used for Natural Gas Liquids/Liquefied Petroleum Gas. In addition, it was reported that 22 BSCF of gas was allocated for domestic supply through the Nigerian Gas Company and others, while about 50 BSCF of gas was re-injected and utilized for gas lift make-up.