Gas flaring in Nigeria wastes colossal amount of energy

Nigeria, Africa’s largest oil producer, faces a paradoxical situation where vast amounts of natural gas, which could significantly alleviate the country's energy shortages, are being wasted through flaring. In the first half of 2024 alone, an estimated 148.7 million standard cubic feet of gas were flared, according to the National Oil Spill Detection and Response Agency (NOSDRA). This amount of wasted gas has the potential to generate approximately 3,401.83 megawatts (MW) of electricity, enough to power over 3.4 million households. 

The flaring of gas not only represents a significant loss of potential energy resources but also a substantial economic loss. The value of the gas flared in the first six months of 2024 was estimated at around $360 million, a figure that could have provided much-needed relief to Nigeria's ongoing foreign exchange woes. Nigeria has been grappling with a severe foreign exchange shortage, exacerbated by economic challenges, including inflation and a depreciating naira. 

Moreover, the environmental and public health impact of gas flaring is profound. The release of methane and other harmful gases contributes significantly to environmental degradation and global warming. Methane, a potent greenhouse gas, has a global warming potential many times greater than carbon dioxide, making the reduction of gas flaring an urgent environmental priority. 

Nigeria’s power generation capacity is a fraction of what is needed to meet the country’s energy demands. With an installed capacity of about 13,014 MW and an operational capacity of approximately 4,000 MW, the country faces frequent blackouts and power shortages. Over 100 million Nigerians lack access to electricity, and more than 75% of the population does not have access to clean cooking energy, highlighting the severe energy poverty in the country. 

The inefficiencies in the power sector are further underscored by the frequent collapses of the national electricity grid, which has failed multiple times in 2024 alone. These challenges are compounded by the underutilization of Nigeria’s vast natural gas resources, which could otherwise be harnessed to generate electricity and reduce the frequency of blackouts. 

Experts emphasize the need for Nigeria to shift towards gas commercialization as a means to mitigate the losses from flaring. By investing in infrastructure and revising regulatory frameworks, Nigeria could convert flared gas into valuable energy resources. The development of floating liquefied natural gas (FLNG) facilities and modular processing plants at well sites are among the suggested strategies to capture and utilize flared gas. These facilities would not only reduce flaring but also create profitable clusters that could drive economic growth. 

Additionally, deregulating gas prices could incentivize operators to commercialize the gas instead of flaring it. This approach would align the economic interests of operators with environmental goals, reducing the environmental impact while boosting energy production. The implementation of the Petroleum Industry Act and other regulatory reforms are crucial in achieving these objectives. 

Nigeria's gas flaring issue represents both a significant challenge and an opportunity. By addressing the inefficiencies in gas utilization and implementing robust commercialization strategies, Nigeria could transform its energy sector, reduce environmental degradation, and provide electricity to millions of its citizens.