World News

Government loses N847bn to gas flaring – NOSDRA

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The Federal Government lost about N843bn to gas flaring between January 2022 and August 2023, data obtained from the National Oil Spill Detection and Response Agency has shown.

NOSDRA, in its latest gas flare report, disclosed that oil and gas companies operating in the country, between January and August 2022, flared 147.1 billion SCF of gas, valued at $514.9m, about N390bn (using Central Bank of Nigeria’s current exchange rate of N757.5 to a dollar.).

Again, the firms, between January and August 2023, flared 171.1 billion standard cubic feet of gas valued at about $599m (N453bn).

This gives a total of about N847bn lost between January and August last year and the same period this year.

According to the report, the volume of gas flared in the eight-month period this year was 16.28 per cent higher compared with the same period in 2022.

It added that the gas flared in the first eight months of this year had the potential of generating 17,100 gigawatts/hour of electricity; while it emitted 9.1 million tons of carbon dioxide into the atmosphere.

In addition, it noted that the offending companies were liable for penalties of $342m, about N251bn, adding, however, that a large chunk of the penalties was never collected by the Federal Government.

In comparison, the oil spill remediation agency stated that between January and August 2022, the oil firms were liable for penalties of about $294m (N223bn) and that the gas lost had a power generation potential of 14,700 GWh of electricity, while it was equivalent to carbon dioxide emissions of 7,800 tonnes.

Some of the offending companies, according to NOSDRA include Shell Petroleum, Development Company, Nigerian Petroleum Development Company, Chevron Nigeria, Mobil Oil, Elf Petroleum Nigeria, Nigeria Agip Oil Company, Addax Petroleum, Texaco Overseas (Nigeria), Cromwell and South Atlantic Petroleum, among others.

These companies flared gas from Oil Mining Leases 04, 05, 11, 13, 14, 17, 18, 22, 28, 23, 24, 38, 40, 42, 43, 72, 49, 54, 90, 95, 67, 70, 104, 59, 99, 100, 101, 102 and Oil Prospecting Licenses 222, 316 and 306, among others.

The report comes on the heels of FG’s pledge to the United Nations in 2020, to attain zero gas flare by 2060, ten years after the UN’s 2050 target.

Lifestyle

Gas explosion injures 20 people, burns shops in Kano

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The fire destroyed the place and about three other shops nearby, including part of a house attached to the shop.

Gas explosion at a Liquefied Petroleum Gas (LPG) refiling shop has burnt down shops and injured 20 people in Kano.

A correspondent of the News Agency of Nigeria (NAN) who visited the scene of the incident reports that it occurred in a busy area of Sheka quarters, Karshen-Kwalta in Kano.

NAN gathered that the incident happened at about 8:30 p.m. Thursday when a cylinder exploded and instantly caught fire.

The fire destroyed the place and about three other shops nearby, including part of a house attached to the shop.

Witnesses told NAN that they heard the sound of a gas cylinder explosion.

A witness identified as Malam Abubakar said that many people were rushed to the hospital naked, with burnt skins.

He said that over 10 people were affected by the incident, mostly those inside the shop and the people living close to the place doing their businesses.

When contacted, the Public Relations Officer of the Kano State Fire Service, Saminu Yusif, confirmed the incident.

He said that 20 people were involved, but had been rescued alive and now receiving treatment in hospitals.

Mr Yusif said that the incident was allegedly caused by a fire from a man frying and selling fish near the gas shop.

Business

Nigerian govt issues stricter guidelines for running downstream gas facilities after Lagos explosion

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Firms looking to set up gas-dispensing facilities will henceforth get three approvals and licenses, and scale other regulatory hurdles before obtaining the go-ahead to begin operations, the Department of Petroleum Resources (DPR) declared on Sunday.

“Companies intending to establish these facilities must satisfy all necessary requirements stipulated by DPR and obtain the underlisted applicable approvals: Site suitability approval; Approval to Construct (ATC)/Approval to Install; and Licence to Operate.

“Necessary amenities and equipment’s like functional automated/manual leak tester, functional fire alarm system, and mounted gas detectors, adequate fire water storage and sprinklers, perimeter fence with fire wall amongst others must be provided in the facilities,” Sarki Auwalu, the DPR chief, said in a statement issued in Abuja.

The policy shift is coming days after a gas explosion at Baruwa, Ipaja, Lagos which, apart from killing a number of locals, spurred a collateral damage that affected over 20 buildings.

While taking stock of the accident, the DPR observed the facility was unlicensed and had been running illegitimately, Mr Auwalu said, citing this as the ground for the inferno.

The new operational framework entails preconditions and terms for running Liquefied Petroleum Gas refilling plants and retail outlets, and for setting up autogas refuelling stations, add-on gas facilities as well as gas storage and utilisation.

The DPR head disclosed that the policies aim at deepening gas penetration and utilisation at the same firming up operational safety and the ease of doing business in the energy industry.

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