Nigeria, the 6th largest oil producer in the world, the 1st largest in Africa and the most prolific oil producer in sub-Saharan Africa, is beset by the gas flaring scourge.

This is not surprising because the Nigerian economy is largely dependent on its oil sector, which supplies 95% of its foreign exchange earnings. A member of OPEC, the global oil cartel, Nigeria has a daily production of about 2.0 million barrels per day and a proven gas reserve base of over 187 trillion cubic feet as confirmed by the Presidential Adviser on Petroleum and Energy matters, Dr. Edmund Daukoru, estimated to be the largest in the world and approximately 30% of African Gas reserve.

But the surprise is that there has been no gas infrastructure, with 75% of associated gas flared. Nigeria is believed to flare about 2.5 billion standard cubic feet of associated gas per day, possibly the highest in the world. For the purpose of clarification, gas comes with crude oil when it is struck from the soil and brought to the surface, known in the oil industry parlance as associated gas. While the oil is piped through the flow stations and terminals to waiting ships, the gas is allowed to burn in the atmosphere.

Indeed globally this had been the norm, because gas was once viewed as a waste product at a time global warming was not an issue. Then the contracts entered with oil companies encouraged flaring and there was no obligation to find market for the gas. Directly related to the foregoing was that markets for gas were poorly developed and responsibilities for marketing remained ill-defined. The fourth factor was that most governments did not provide the incentive to maximize economic use of gas.

The rise of environmental consciousness including the discernible negative consequences of gas flaring has forced s global rethink. Studies have shown that these flares contain poisonous gases that are fatal to crops, causing breathing difficulties for humans, and descend, especially on large swathes of the Niger Delta as acid rains. Owing to the level of gas pollution resulting from this and the growing pressure from environmentalists, the present administration became committed to achieving a zero gas flare and consequently President Obasanjo directed that complete flare out be achieved by the year 2008.

It would be recalled that governments before Obasanjo’s administration had criticised the level of gas flaring in the country but none was as committed to flaring out as the present administration that is poised to end the scourge by a set date.

To achieve its objective of zero gas flare by 2008, the Federal Government established a National Forum on the monitoring of Natural Gas Utilization and Implementation of Related Projects, under whose watch the emission levels have dropped considerably. The forum’s strategy is to offer a combination of incentives and sanctions to apply pressure on oil and gas companies towards adopting more economic alternatives to gas and thus save the environment from systematic pollution. Government has also put in place a number of incentives to encourage gas production, transmission and utilisation.

With the current administration’s initiatives at creating and enhancing gas utilisation projects in the domestic scene as well as exploiting the window of opportunity in the international market, flaring ratio has been reduced by 36 percent. The minister of state for petroleum resources, Dr. Edmund Daukoru disclosed this on April 18, 2006 at a ministerial press briefing in Abuja. The reduction, he said, was attributed to various schemes put in place by the Federal Government towards the development and utilization of natural gas in the country since 1999, coupled with a number of gas based projects either being planned or executed.

The National Integrated Power Project (NIPP) ,an intervention project conceptualised by the President Obasanjo to comprehensively address the state of electricity infrastructure in the country, is designed as a fast track approach towards improving the nation’s electric power supply through the implementation of Generation, Transmission, Distribution and Gas supply projects. Its main thrust is the design, manufacture and supply of seven new Gas Turbine Power Plants with the provision for conversion to combined-cycle operation.

When completed, the current PHCN available capacity of about 4,000 MW will be increased by 2,744 MW or 68%, and will effectively transform the electricity supply infrastructure throughout the country.

All the power plants are to be fuelled by gas; the joint venture partners in consortium with NNPC will supply gas from associated and non-associated sources. It is expected that the supply of gas to the power stations will significantly reduce gas flaring in the Niger-Delta Area, as about 748 million metric standard cubic feet per day will be consumed by the power plants.

For the Federal Government there is no going back on the 2008 gas flare-out date despite the agitations by some oil companies for a later date. Officials of Shell, known as the worst culprit of gas flaring in Nigeria have argued that the 2008 date is unrealistic as not much can be done until the liquefied natural gas projects now coming on stream are fully operational and able to utilize all the associated gas.

Shell produces oil, gas and other fossil fuels in over 100 countries including its home country UK, where there is zero tolerance for gas flaring, and consequently it has invested considerable sums of money to eliminate the noxious activity. For the Niger Deltans and the majority of Nigerians, what is good for the Scottish countryside and the coastal waters where Shell operates should hold good the Niger Delta too. Director, Department of Petroleum Resources, Tony Chukwueke said, while speaking at a one-day seminar on gas-monetization in Lagos, that the 2008 date is embedded in gold.

Government is at present increasing domestic gas utilization through actions geared towards:
• Meeting the country’s power need through rehabilitation of several NEPA (PHCN) generating units and in joint venture with multinationals for establishment of new Independent Power Plants (IPPs).
• Exploring and encouraging additional domestic gas projects and market development.
Consequently, the following schemes have emerged or are emerging as the global means of transporting and utilizing large volumes of natural gas:
• The West African Gas Pipeline Project
• GTL plant being developed by NNPC AND Chevron/Texaco in Escravos
• LNG Projects

EXISTING POWER STATIONS;

• EGBIN THERMAL POWER STATION, LAGOS STATE. 1200MW
• AFAM THERMAL POWER STATION, RIVER STATE. 456MW
• SAPELE THERMAL POWER STATION, DELTA STATE. 240MW
• DELTA THERMAL POWER STATION, DELTA STATE, 900MW
• IJORA THERMAL POWER STATION, LAGOS STATE 40MW
• KAINJI HYDRO POWER STATION, NIGER STATE.640MW
• JEBBA HYDRO POWER STATION, NIGER STATE.560MW
• SHIRORO HYDRO POWER STATION, NIGER STATE.600MW

ON-GOING PROJECTS

• GEREGU THERMAL POWER STATION, KOGI STATE.414MW
• OMOTOSHO THERMAL POWER STATION, ONDO STATE. 335MW
• PAPALANTO THERMAL POWER STATION OGUN STATE.335MW
• ALAOJI THERMAL POWER STATION, ABIA STATE. 504MW

7 NEW FEDERAL GOVERNMENT PROJECTS IN NIGER DELTA

• CALABAR THERMAL POWER STATION, CROSS-RIVER STATE.561MW
• EGBEMA THERMAL POWER STATION, IMO STATE.338MW
• EYAEN THERMAL POWER STATION, EDO STATE.451MW
• GBARIAN/UBIE THERMAL POWER STATION, BAYELSA STATE. 225MW
• IKOT ABASI THERMAL POWER STATION, AKWA IBOM STATE.300MW
• SAPELE THERMAL POWER STATION, DELTA STATE. 451MW
• OMOKU THERMAL POWER STATION, RIVERS STATE. 230MW.