With debt on the rise, the federal government has lost an estimated $16 trillion over 10 years due to natural gas flaring, with the debt standing at 87.38 trillion naira in the second quarter of 2023.
The Energy Association’s 72nd World Energy Statistics Survey 2023 revealed this on Monday, pointing out that the amount was lost between 2012 and 2022.
Analysis of the data shows that upstream and downstream oil and gas companies operating in the country released the most amount of gas in 2012, with 12.9 billion cubic meters of natural gas, 9.2 billion cubic meters in 2013 and 9.2 billion cubic meters in 2014. is estimated to be 8.3 billion cubic meters. 7.5 billion cubic meters in 2015.
Flaring continues to decline as the years go by, with 7.2 billion cubic meters flared in 2016.
It increased to 7.5 billion cubic meters in 2017, but sharply decreased to 7.3 billion cubic meters in 2018, and increased to 7.8 billion cubic meters in 2019.
The threat decreased significantly to 7 billion cubic meters in 2020, further decreased to 6.5 billion cubic meters in 2021, and leveled off at 5.3 billion cubic meters in 2022.
The total amount of gas exploded by the country during the 10-year period studied is an estimated 86.5 billion cubic meters.
According to Hebrew Energy, each billion cubic meters of natural gas is worth approximately $183 million, bringing the estimated value lost to threats to $16 trillion during the period covered.
The National Oil Spill Detection and Response Agency, NOSDRA, said in July that oil companies could be fined a total of $25.3 million in penalties for gas flaring. This is equivalent to N19.4 billion, which is the current official trading value of the Central Bank of Nigeria. The rate is N768.77/$.
Enguru Gbenga Komolafe, Chief Executive of the Nigeria Upstream Regulatory Petroleum Commission, said: “The wasteful disposal of natural gas not only has negative health and environmental impacts, but is also a major contributor to wasted resources and devalued the country. It is also the cause.”