The Nigerian policy position on commercialization of gas flaring has come into effect by effectively putting a price on carbon generated by gas flaring activities by oil operations in the country. The Federal Government now receive a price pegged at $0.25 Cents per 1000 standard cubic feet of gas flared. Oil and gas firms operating in the country flared a total of 215.9 billion standard cubic feet of natural gas in the first nine months of last year, amounting to a potential loss of N197bn at $2.97 per 1,000scf in 2018. The quantity has grown to 330 billion cubic cc in 2019. The average price of domestic gas is $1.50 per 1,000scf under the The price on offer is below what obtains in the Domestic Supply Obligation (DSO) which has a price tag of $1.50 per 1,000scf of gas. Nigeria currently loses N153 billion annually to gas flaring.
This will encourage investors to reduce flaring and divert them for more economical means and help Nigeria’s achievement of Paris Agreement milestone by 2025. Nigeria is also a signatory to the Global Gas Flaring Partnership (GGFR) for global flare-out by 2030. The Nigeria local commitment is a national flare-out target by year 2020.
Consequently, it is in expected that the hitherto flared gas would now be harnessed to stimulate economic growth, drive investments and provide jobs in oil producing communities and indeed for Nigerians through the utilization of widely available innovative technologies.
The Federal Government of Nigeria designed the strategy to eliminate gas flares with potentially enormous multiplier and development outcomes through technically and commercially sustainable gas utilization projects developed by competent third party investors
