NNPCL AND MENACE OF GAS FLARING
NNPCL and partners are gradually eliminating gas flaring in aligning with best global standards, writes James Okunseri
Things are changing for the better in Nigeria’s oil and gas sector. Apart from the increase in daily oil production, made possible by the liberalisation occasioned by players in the upstream, the coming onboard of private refineries like Dangote and the resuscitation of the NNPC refineries in Port Harcourt and Warri, improvements in the systems and processes are being put in place. The latest being the near-elimination of gas flaring that was recently achieved in two oil fields in the country.
According to the Nigerian National Petroleum Company Limited (NNPCL), it has reduced gas flaring by 96 per cent at the Anyala (OML 83) and Madu (OML 85) fields, jointly managed by it and the First Exploration & Petroleum Development Company Limited. This milestone was achieved by re-injecting the excess gas into an underground reservoir instead of flaring it.
“The NNPC Ltd and First Exploration & Petroleum Development Company Limited Joint Venture has successfully achieved 96 per cent reduction in routine flaring of associated gas from the Anyala (OML 83) and Madu (OML 85) fields,” said NNPCL image maker, Olufemi Soneye.
“This remarkable milestone was attained through the implementation of an AG reinjection strategy into a designated underground storage reservoir at the Madu field, situated in OML 85, offshore Bayelsa State. The initiative ensures that gas, which would have otherwise been flared, is now safely stored, significantly mitigating environmental impact.”
Gas flaring describes the practice of burning off excess natural gas that is produced along with crude oil, often called ‘associated gas’ or ‘AG’ in oil and gas parlance. According to the World Bank’s Global Gas Flaring Reduction Partnership (GGFR, 2023), global gas flaring stayed relatively constant throughout 2010 to 2020 and reached 150 billion cubic meters (BCM) in 2020. The report says this is the equivalent to the total annual gas consumption of sub‐Saharan Africa. And the World Bank 2024 Global Gas Flaring Tracker Report revealed Nigeria and eight other countries as the major contributors to global gas flaring, accounting for 75 per cent of the world’s flared gas. These countries, which include Russia, the United States, Iran, Iraq, Venezuela, Algeria, Libya, and Mexico, produce 46 per cent of the world’s oil. Just as they also flare gas.
In Nigeria, a survey conducted in 2022 revealed that there were 174 individual flare sites where 5.3 BCM of gas is flared annually. While this figure is less than the top five flaring countries – Russia (24 BCM), Iraq (17 BCM), Iran (13 BCM), U.S. (12 BCM), and Algeria (9 BCM) – it is good that the NNPCL is on track to ultimately eliminate gas flaring. For many years, in many communities where oil exploration takes place, gas flaring has been a scourge – an environmental hazard and pollutant. But with this tremendous reduction in flaring, it is hoped that better times are in sight, especially for the affected communities.
With this latest development, the national oil company is aligning with the global best practice which it affirmed in its statement: “The reduction in AG flaring aligns with the regulatory framework set forth by the Nigerian Upstream Petroleum Regulatory Commission, underscoring the JV’s compliance with national environmental standards and global best practices.”
Already, the CEOs of the firms in the Joint Venture are thrilled with the development, a major step toward achieving environmental sustainability and reducing greenhouse gas emissions. This would also reduce waste as well as protect the environment. Speaking on the achievement, the NNPCL Group Chief Executive Officer, Mele Kyari, said: “It reflects our commitment to aligning our operations with global standards and environmental best practices.”
And according to the MD/CEO of First Exploration & Petroleum Development Company Limited, Ademola Adeyemi-Bero: “This milestone reflects our unwavering commitment to environmental sustainability and responsible energy production. By substantially reducing our carbon footprint, we are contributing to a sustainable energy future that benefits both the environment and the communities we serve.”
Normally, the excess gas from the two oil fields would have been flared. That, sadly, has become a standard procedure in the production process of crude oil, a situation which is wasteful as well as harmful to the environment. That gas flaring is responsible for environmental degradation, especially the air, is uncontestable. Add the fact that it is also dangerous, then the reason for celebrating the reduction of gas flaring becomes obvious. The release of carbon, volatile organic compounds (VOCs), and other harmful substances associated with gas flaring pollute the air at a speed which alarm environmentalists. Its effects in accelerating global warming and melting ice is of concern to climate change experts. Its effect of producing acid rains has also been known to damage the vegetation, reduce crop yields and damage roofing sheets as well as other structures.
Healthwise, gas flaring has been associated with creating or compounding health issues such as respiratory diseases, premature deaths and various types of cancers, especially thyroid cancer. It is also a culprit in Cardiovascular dysfunction, bronchitis, gastrointestinal problems, and acid rain-related lung diseases.
While ‘associated gas’ is a valuable commodity and scientists desire to stop gas flaring when it can be appropriately separated from oil and transported, this has not been achieved. And the reasons border on safety, economic or regulatory issues. For instance, it allows operators to reduce and manage unpredictable and significant pressure variations and de-pressurize their equipment by flaring any excess gas. Also, depending on the locations, operators sometimes find it more cost-effective to just flare the gas rather than capturing and using the associated gas. Regulatory reasons may also be the cause where companies resort to gas flaring.
However, that the JV has drastically cut gas flaring at these two fields would be a relief for the communities and its environs. And it is expected that this feat recorded by the NNPCL and FIRST E&P where gas that could have been flared is now safely stored in a designated underground reservoir, would be replicated in other fields across Nigeria. According to a 2022 World Bank report written by Ooniyi Alimi and John Gibson, it is estimated that around two million people in the country live less than four kilometre away from a flare site. That’s a huge chunk of the country’s population in such proximity to the danger of gas flaring sites.
Hence, as Nigeria strives towards increasing her crude oil production level to 2 Million Bpd from 1.8m Bpd, it is commendable that the NNPCL and her partners are not only roaring to increase production numbers but are also ensuring efficiency and a commitment to aligning with the best global standards and environmental practice. For this, it’s kudos to NNPCL and its JV partners.
Okunseri writes from Abuja
