Feasibility of achieving Nigeria’s zero gas flaring target

While routine gas flaring remains a persistent issue for oil and gas-producing countries like Nigeria, the practice not only harms the environment but also presents a missed opportunity to harness a valuable energy source. However, with the right regulatory framework and strategic partnerships, Nigeria has the potential to make substantial progress toward achieving its zero-gas flaring target, WALIAT MUSA writes.

Over the years, Nigeria has introduced various regulations aimed at curbing gas flaring, including the Gas Flaring Prohibition and Punishment Act of 2005, which set penalties for companies flaring gas beyond a certain threshold. However, implementation has been inconsistent, and the lack of stability in the country’s policy environment has hindered progress.

According to the World Bank, Nigeria remains one of the top nine gas-flaring countries globally. In 2023, global gas flaring at upstream oil and gas facilities increased by nine billion cubic meters (bcm) from 139 bcm in 2022 to 148 bcm in 2023, a seven per cent increase.

At the same time, oil production rose by just one per cent, leading to a five per cent increase in global average flaring intensity, the amount of gas flared per barrel of oil produced. At the current price of gas, the potential market value of the overall amount of gas flared in 2023 could have been between $9 billion and $48 billion.

Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed that Nigeria flared approximately 192 million standard cubic feet (MMSCF) of gas in 2024 as against the 183 MMCSF in 2023 while the National Gas Flare Tracker showed that Nigeria flared 148.7 million standard cubic feet of gas in the first six months of 2024.

This increase indicated a reversal of the reduction in gas flaring observed between 2021 and 2022, resulting in the highest volume recorded in the last five years and an increase in flaring intensity. This suggested that the global efforts to reduce gas flaring have not been sustainable and urgent action is required if the world is to achieve zero routine flaring by 2030.

However, according to the World Bank global gas flaring tracker, eliminating gas flaring would avert at least 381 million tonnes of carbon dioxide equivalent emissions being released into the atmosphere each year.

Gas flaring emits carbon dioxide, methane, and black carbon into the atmosphere, contributing significantly to global warming. The environmental toll from this practice is compounded by the economic loss, as the flared gas could otherwise be harnessed for electricity generation, industrial use, or export.

For Nigeria to achieve its goal of eliminating gas flaring, strong, consistent, and transparent policies must be at the core of its strategy. Over the years, the government has implemented various measures aimed at curbing gas flaring, such as the Gas Flaring (Prevention of Waste) Regulations of 2018, which set targets for reducing flaring and provided a legal framework for penalties against non-compliant companies.

However, the lack of consistent policy enforcement and regulatory uncertainty has hindered progress. To build investor confidence and encourage long-term commitments from both domestic and international stakeholders, policy stability is crucial. The Nigerian government must ensure that its policies are not only enforceable but also provide a clear, predictable regulatory environment for the sector. Strengthening frameworks such as the Petroleum Industry Act (PIA) and its provisions for gas commercialisation could help accelerate the reduction of gas flaring by offering clearer guidelines for gas utilisation.

The General Manager of OML 147 and Amukpe-Escravos Pipeline (AEP) and Asset Manager at Pan Ocean Oil Nigeria Limited, Dr Tobore Gbemre, told The Guardian that to eliminate flares, there is need to invest a lot in some capital projects like gas plants and pipelines.

He added that in an environment like Nigeria where frequent policy changes discourage private sector involvement, the government must establish stable and consistent policies to encourage private investment in the sector.

Gbemre emphasised the need for the government to provide incentives, such as rebates and carbon credits, to support project efforts while also prioritising extensive advocacy to drive progress.

In 2009, Pan Ocean became one of the few companies to sign on to the Carbon Credits scheme offered by the Clean Development Mechanism (CDM) in the Kyoto Protocol and currently remains the largest registered carbon-emission reduction project in West Africa.

So, that shows that as an organisation, we are actually very interested in that and also recently, we recently commissioned a Vapor Recovery Unit (VRU) compressor, which helps us to utilise flared gas. So, the gas that we used to flare, we are no longer flaring. Instead, we are sending it to the gas plant for processing.

“So, we have a gas processing plant that we use to strip the flared gas into various components. That also creates an additional stream of income for the organisation, while ensuring that we do not flare to the environment. I am happy to inform you that my facility, OML 147, was adjudged one of the greenest facilities in Nigeria because currently we are flared down, we are not flaring at all in OML 147,” he added.

He pointed out that while policy stability is essential, the role of the private sector cannot be overlooked in Nigeria’s efforts to reduce gas flaring. The country needs substantial investment in infrastructure, technology, and innovation to convert flared gas into a usable resource.

The Nigerian government, according to stakeholders, must create attractive incentives for oil and gas companies to invest in gas utilisation technologies, such as gas-to-power plants, liquefied natural gas (LNG) facilities, and pipeline infrastructure. Tax credits, favourable financing conditions and regulatory support are among the incentives that could encourage greater private-sector participation.

To significantly reduce flaring, Nigeria needs to prioritise investment in the infrastructure that can capture and utilise gas that would otherwise be wasted. This includes expanding the network of gas pipelines, establishing new processing plants and improving storage and transportation systems. Modernising these infrastructures could allow Nigeria to use its abundant natural gas for electricity generation as148.7 million standard cubic feet of gas were flared in the first half (H1) of 2024, which could generate 3,401.83 megawatts (MW), according to data from the Nigerian Gas Flare tracker of the National Oil Spill Detection and Response Agency (NOSDRA).

President of the Nigerian Association of Petroleum Explorationists (NAPE), Johnbosco Uche, acknowledged that the Nigerian Gas Flare Commercialisation Programme (NGFCP), aligned with the 2021 Petroleum Industry Act (PIA), is a commendable initiative aimed at reducing gas flaring and supporting Nigeria’s commitment to achieving net-zero emissions by 2060.

He called for an ‘Execute’ or ‘Relinquish’ policy, which would mandate that if short-term milestones were not met within the next year, the awards should be reassigned to new bidders.

Further, companies that fail to establish functional infrastructure to capture flared gas by 2030 should be subjected to the penalties outlined in the PIA.

According to Uche, in ensuring the success of the NGFCP and adherence to Nigeria’s emission reduction targets, it is imperative to enforce existing regulations stringently. This, according to him, includes holding companies accountable for delays and ensuring that penalties are not only imposed but also collected and utilised appropriately.

“Despite the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) awarding flare sites to successful bidders, the gas commercialisation programme has yet to fully achieve its objectives. A significant issue is that many awarded companies have not finalised the necessary contracts with the primary asset owners, leading to delays in infrastructure development essential for capturing flared gas. If this trend continues, the goal of eliminating gas flaring by 2030 may not be realised,” he said

He stressed that implementing a clear execute or relinquish policy could incentivize timely project execution and attract more committed participants to the programme as the PIA provides a robust framework to facilitate this initiative, targeting the elimination of gas flaring by 2030.

“Though the NGFCP and the PIA provided a solid foundation for reducing gas flaring in Nigeria, effective implementation and enforcement are crucial. By holding companies accountable and ensuring timely infrastructure development, Nigeria can make significant strides toward its 2030 flares-out target and its 2060 net-zero emission goal,” he said.

Energy expert, Prof. Dayo Ayoade told The Guardian that efforts to control gas flaring have been ongoing since 1984, with the latest commercialisation programme introducing market incentives to address the issue. However, these efforts have seen limited success due to challenges with enforceability, which remains a significant hurdle.

He explained that the problem persisted because of the necessity to bring large volumes of crude oil to the market.

He emphasised that the lack of infrastructure, coupled with insufficient regulatory and political will, hinders efforts to stop gas flaring. He noted that halting gas flaring would require shutting down oil fields, which would halt production. Therefore, he stressed the urgent need to build infrastructure to capture and process the gas effectively.

“We either produce or we flare. If we don’t want to flare, start building infrastructure. How do you build infrastructure? You must give very good commercial incentives to oil producers to build the infrastructure that will take away the gas and utilise the gas. So, it means that you have to increase the incentives. But when you increase the incentives, what does that do? It reduces the revenue that goes to government pockets sometimes in the near term. So, in the long term, it is in our interest to do this.