ABSTRACT
The research argues that although a gas flaring stoppage is not successfully in-place in Nigeria, fitting the appropriate technology with complementary economic and institutional factors can lead to near-zero or zero gas flaring. Nigeria is a developing country with a unique culture of many tribes and one of the largest growing urban populations in the world. Infrastructural, political and economical challenges to meeting the goal are introduced. Reinjection of gas back into wells is not available as an option to gas flaring because a large region for gas production is wetlands (Buzcu-Guven et al. 2012). Wetlands are unsuitable for gas reinjection. GGFRP (2012) recommends natural gas conversion to power generation. Nigeria has large volumes of natural gas available if the gas from the gas flaring activities was collected. The best scenarios for Nigeria are LNG and GTL. For the monetization of natural gas and making Nigeria a competitive force as a developed country (not developing) LNG can be the best option as demonstrated by the NLNG plant at Bonny Island. For remote locations with poor transportation nearby, GTL is good because it can be produced onsite. Nigerians need gas products for cooking and home heating. Transforming the energy from natural gas to electrical energy can allow a reliable electrical grid for Nigeria. LNG is the best option because the natural gas industry is expecting a glut of product due to natural gas extraction from shale geology in the U.S. LNG is the best option when natural gas is cheap (Economides 2005). Conversion of associated gases into LNG can create revenue of approximately $6.1 billion/LNG MMBtus. LNG can be converted to thermal energy in the form of electricity (Btus) and solve two problems in Nigeria at one time: recovery of gas flaring and production of electricity. According to data reported for 2013 (NNPC) the amount of gas flared can be converted to approximately $4.17 billion/LNG MMBtus. The value is equal to about ₦ 1.435/LNG MMBtus.
1.0 Chapter 1 Introduction
1.1 Summary
Chapter 1 describes the how Nigeria’s gas flaring practices rank with the rest of the world and reviews the degree of the problem caused by gas flaring in Nigeria. The monetization of recovered associated gas is introduced. The background and the problem statement, as well as the aims and objectives of the research are discussed. A summary of the thesis and a short list of definitions are included at the end of the chapter.
1.2 Background
Gas flaring continues to take place in Nigeria even though the a great deal of damage is caused to human health and the environment The Nigerian government’s calls for a moratorium on gas flaring have been unsuccessful. Many barriers need to be overcome to successfully stop gas flaring. The barriers to successfully stopping gas flaring in Nigeria include militant activities, regulatory uncertainty and theft. The situation is made worse due to vandalism and theft. The International Energy Agency (EIA) (2014:48) reports that an “estimated 150 thousand barrels . . . amounting to more than $5 billion per year “is lost daily in Nigeria.
On the other hand, gas flaring has decreased dramatically over the past ten years (IEA 2013). The natural reserves in Nigeria are so plentiful that when all other African countries experience declining production by the late 2020s, Nigeria will not have that problem. The Nigerian Association of Petroleum Explorationists (NAPE) commented in the NAPE Newsletter (2012:1) that the gas reserves are “huge,” amounting to approximately 187 trillion cubic feet (Tcf) or approximately 5,295 trillion cubic meters (Tcm). The large amount reflects Nigeria’s ranking as seventh in total natural gas reserves globally (NAPE 2012:1). The United States Geological Survey (USGS) reported that as much as 600 Tcf can be extracted. The IEA predicts Nigerian gas production for 2018 for will increase due to investments in upstream and downstream markets (IEA 2013:90). (See fig. 1-1 & table A-1) Notice that in 2000 the gas production in Nigeria was small but has progressively increased especially since 2011. (See fig 1-1)
Nigeria is therefore poised to become an important player in the global supply and demand for natural gas. Historically, gas flares were used to flare gas that was considered as waste. Today modern technology creates methods to capture the gas instead of burning it in flares. After collecting the gas the toxic compounds and remove and the resulting gas product is sold or used as feedstock. The result of a successful zero gas flaring policy would benefit Nigeria in many ways including the elimination of damage to health and environment by flaring, local customers can buy the gas and an export market can be developed.
The potential for producing and selling the hydrocarbon (HC) compounds of natural gas instead of gas flaring is very attractive monetization project. The reason they are called HC is because the compounds consist only of hydrogen and carbon but the hydrogen and carbon are in different proportions, one to the other. The NGL end products range from propane for home heating to ethane, the main ingredient for anti-freeze and plastics (EIA 2012). (See table 1-1) Gasoline for vehicles uses pentane or pentane-plus, the heavier molecules.
The research argues that fitting the appropriate technology with complementary economic and institutional factors can lead to zero gas flaring in Nigeria. Political problems such as corruption in the system must also be overcome but the research does not address that problem. Monetization of Nigeria’s natural gas has great potential when producing liquefied natural gas (LNG) which is mainly methane, natural gas liquids (NGL). (See table 1-1 gas-to-liquid (GTL) The production of thermal or electrical energy (gas-to-wire - GTW) is advantageous, because the component of gas not used to produce heat to use in the process or electricity for electricity can be sold to fertilizer and methanol plants (GGR 2011:29). Unconventional strategies that work well in North African and Arabian countries are discussed.
1.2.1 Purpose of Gas Flaring and Venting
Gas flaring and gas venting (venting is done to release pressure in the system) during oil and gas production takes place at wells extracting fossil fuel from underground reservoirs and at processing plants. Gas flaring and venting from an elevated stack is the common method for what the petroleum sector considers the “safe dispersion of the effluent” (Clearstone 2002). Intermittent flaring is used for safety purposes during emergencies to offset pressure changes, mainly excess pressure formed in the gas flow (Broere 2008). Historically, the second main reason for flaring is that the gases were burned because they were presumed to have no economic use and were therefore burned off as a way of waste reduction (Broere 2008). Modern technology makes it possible to capture the associated gas and remove impurities so the gas product is suitable for many uses. Associated gas is the natural gas that is either dissolved in the oil while in the reservoir (solution gas) or is in a separate layer above the oil called Gas-Cap Gas (SPE 2005; IEA 2010:88).
1.2.2 History of NNPC and Gas Flaring
Soon after Nigerian independence late in the 1960s, the Nigerian National Oil Corporation was formed to manage the country’s gas and oil interests (Nigeria 2003). And then in 1971 the company was reorganized into the Nigerian National Petroleum Corporation (NNPC) (Nigeria 2003). Nigeria became a member of the Organization of Petroleum Exporting Countries (OPEC) after the establishment of the NNPC. The NNPC was divided into twelve units in 1988 (Nigeria 2003). Examples of the business units under the NNPC umbrella are the Nigerian Petroleum Development Company (NPDC), the Nigerian Gas Company (NGC), and Hydrocarbon Services Nigeria Limited (HYSON) (NNPC 2014). The major petroleum operators in the upstream activities hold joint ventures (JV) with NNDC.
Continuous gas flaring began at the same time that petroleum extraction and production started, because the gases were considered a problem; at time the gas value for heat, energy and other marketable products was not appreciated (Broere 2008). Problems with transportation in the Niger Delta, for example, led petroleum corporations to consider the gas associated with extracted oil as a waste. The oil extraction practice began in Nigeria under British rule (Osuoka and Roderick 2005).The destruction from the pollution caused by fossil fuel exploitation and gas flaring oil is recognized as dangerous to human health and the environment (Kadafa 2012). The negative effects of gas flaring to Nigeria’s sensitive Niger Delta are quantified in several research studies on topics including infrastructure corrosion (Osuko and Roderick 2005), deterioration of health, the environment and the economy (Ajugwo 2013), acid rain, environmental pollution, and “ecological disturbance or destruction” (Ubani and Onyejekwe 2013: 246).
Pourhassan and Taravat (2014) linked the volume of gas flaring, oil prices, CO2 emission concentrations and natural resources value with reference to GDP in developing countries. The researchers enhance a computer model to study a dataset from 1994 to2008 in the following countries “Algeria, Iran, Iraq, Kuwait, Qatar, Russia, Saudi Arabia and Tunisia” (Pourhassan and Taravat 2014: 103). All the countries have oil-based governments making them similar to Nigeria. The Levin, Lin and Cho (LLC) test was used to avoid biased results and “guarantee that the regression is real” (Pourhassan and Taravat 2014: 103). Pourhassan and Taravat (2014: 103) considered the gas flaring (Lgas) as the independent variable, and Oil price (Lpoil), CO2 emissions (LCO2) and the total natural resources rent of GDP (LNRR) as the dependent variables. The results showed that Oil Price, CO2 emissions and the Total Natural Resources Rent as GDP are significant and fixed. Therefore, the Oil Price and the Amount of Gas Flaring exhibit a “positive and meaningful relationship” so that if Gas Flaring increases by 0.305 percent, a one unit price increase occurs in the Oil Price coefficient ” (Pourhassan and Taravat 2014: 103). Natural gas is not as environmentally destructive to the atmosphere as burning the gas; so the use of the coefficient for CO2 emissions was used as a variable.
The environmental influences are small and the economics are promising because the local consumers and export of gas (such as LNG to Japan) are promising. The researchers recommended viewing associated gas (A.G.) as a valuable resource (Pourhassan and Taravat 2014). Stakeholders in exploitation of the A.G. necessarily include public, private and foreign investments. In order to use A.G. economically infrastructures must be built, government incentives offered and the necessary technology developed from basic technology already available (Pourhassan and Taravat 2014).
In Alberta, Canada and globally, the flaring technique is used to combust toxic and odorous compounds (Clearstone 2002). Over 250 toxins have been identified by the Canadian Public Health Association (CPHA) (2000) including the particulate matter that makes up the smoke, (See fig. 1-1) and benzapyrene, dioxin, H2S, benzene, toluene and xylene. The toxins are from both, the compounds that have been burned and the compounds that have not been burned CPHA (2000). The problems are inherent across fossil fuel producing developing countries (Taravat 2014).
In 1990 gas flaring in Nigeria amounted to approximately 22,410 million cubic meters (Mcm) and the gas produced was about 28,430 Mcm (NNPC 1990). In 2013 the gas produced increased to 61,642 for the year by the amount of gas flared was approximately 12,700 that year (NNPC 2013). (See fig. 1-4)Therefore, reduction of gas flaring in Nigeria has increased dramatically, but more reduction is necessary to meet regulations on greenhouse gases (GHGs), the Nigerian government’s goal of zero flaring and increase the economic benefits to optimum levels. The amount of gas flared subtracted from the amount of gas flaring reduction is equal to gas that can be recovered and used to sell.
Figure 1-5 The red line shows the decreease in gas flaring in Nigeria (Carbon 2013)
1.2.3 Satellite data from Nigeria
Satellite data is now used to determine the concentrations of pollution including atmospheric ozone pollution caused by non-methane volatile organic compounds and HCs (Marais, Jacob, Wecht, Lerot et al. 2014).
Dense urban populations of Nigeria coincide with the gas production area of the country. (See fig. 1-2 left) The non-methane VOCs and the HC emissions, therefore are located where the most negative impact on the largest number of people. (See fig. 1-2 middle and right) In 2006 approximately 1,481 wells and 123 gas flaring sites were reported in the Niger Delta (Kadafa 2012: 38). The main component of flared gas is methane (CH4). The second component in terms of concentration and volume is carbon dioxide (CO2). Methane and carbon dioxide molecules are especially problematic due to their ability to hold heat from sunlight close to the earth’s surface causing the greenhouse effect. The gases are part of international and national plans to decrease gas flaring. Methane is even worse than CO2 because CH4 remains in the atmosphere approximately 21 times longer than CO2, so methane has the ability to trap more heat for a longer period of time (UNFCCC 1998).
1.2.4 Global Gas Flaring and Venting
According to the United States (U.S.) Energy Information Agency (EIA 2013), only Russia flares more gas than Nigeria in world gas drilling and production facilities. Ten percent of global gas flaring and venting takes place in Nigeria according to current reported values (EIA 2013). In 2007, the amount of gas flared in Nigeria amounted to 16.1 Bcm and measurements in 2011 decreased to 14.42 Bcm (EIA 2013).
Russia is notably the leading country with the highest amount of gas flared with about 27 per cent, which is as a result of the abundance in its gas reserves, followed by Nigeria with approximately ten to eleven per cent world (EIA 2013). Among the top ten gas flaring countries in the world, Nigeria is the only country that flared less gas in 2006 than in 1995 (See fig. 1-3) Although Venezuela contains large oil and gas resources the country flares the least amount of gas in the world; about three percent (EIA 2013).
1.3 Problem Statement
Gas flaring and venting is done from vertical flare stacks or in a horizontal axis which is at the ground level; both positions pose great danger to the environment. Nigeria does not have a well-established infrastructure such as pipelines, good roads for transport and ease of marketing to local consumers. Therefore, a large amount of associated gas are simply flared or vented off as waste or unusable gas even though the gases could be used as natural resources for Nigeria. Due to the indecent horizontal venting or flaring of gas, several tonnes of dangerous oxides are being released into the atmosphere examples of such include hydrocarbons (HC) such as methane and carbon dioxide, toxic nitrogen and sulphur oxides, and carcinogenic compounds such as benzene. Gas and oil production companies are expected to reduce and eventually stop gas flaring in order to ensure the safety of the local citizens. But in order to reach those goals, efficient ways to market the products to local consumers need to be put into place. Recent technology needs to be implemented to reduce gases emitted to the Nigerian atmosphere. The research explores the technology available to reduce gas flaring, produce marketable products, protect the environment, meet regulatory and become economically viable.
1.4 Aim
The aim is to investigate and evaluate the existing gas flaring technology and recommend the best strategy for meeting the needs of Nigeria while reducing gas flaring.
1.5 Objective:
1.6 Methodology
Methodology for the research is both qualitative (descriptive) and quantitative (analytical) due to the complexity of the topic. The complexity is due to the presence of the largest international gas and oil producers in the world, the involvement of the Nigerian state petroleum company, the complications due to the lack of governmental oversight and the need to meet international goals for decreasing GHG emissions due to global warming, as well as local infrastructure issues.
A preliminary literature review was carried out in order to find a topic to add to the knowledge on the subject and find gaps in the knowledge. Gaps in the published literature are addressed in the research that addresses the need for new technology for the recovery of Nigerian A.G. instead of gas flaring. The issue is very complex, so the issues linked in the research were chosen in order to add a new perspective. The research looks at (a) new technology for gas flaring that can realistically be used in Nigeria and how to market the gas available due to gas flaring recovery, (b) effects on the environment around the flaring, and (c) the institutional effects of legislation, regulation and economical. Strength, Weakness, Opportunity and Threat (SWOT) assessment is done to evaluate the suitability of the best strategy for Nigeria. SWOT is an analytical tool that aids in choosing good management strategies. SWOT is a management tool that measures internal strengths and weaknesses of a strategy compared to the external threats and opportunities. SWOT is used to determine the best strategy for gas flaring recovery in Nigeria.
1.6 Summary of Thesis
Chapter 2 contains a literature review covering strategies including gas flaring, natural gas liquids, and liquid natural gas production. The environmental, institutional and production dynamics for natural gas and products are reviewed. The future of natural gas and gas flaring are discussed based on International Energy Agency and World Bank reports. Legislation, monetization and enforcement strategies are discussed.
Chapter 3 discusses the qualitative research steps used to build the literature review. Examples of the types of research and information pertinent to the research are listed. SWOT analysis is described and the way the SWOT analysis is used for the research is explained.
Chapter 4 is the result chapter. Gas flaring data from the Annual Statistical Bulletin found on the Nigerian National Petroleum Corporation (NNPC) Corporate Planning and Development Division (CPDD) are presented. The SWOT results are presented in tabled form, for gas flaring reduction technology, environmental factors and institutional (regulation, enforcement and economic factors). The SWOT tables are discussed. A final SWOT analysis is presented that takes into account the best technology and the internal and external advantages and disadvantages. Chapter 5 is the conclusion where recommendations are offered. The limitations of the research are explained. Future research is suggested in order to continue the study further.
1.7 Definitions
Associated gas is the natural gas that is either dissolved in the oil while in the reservoir (solution gas) or is in a separate layer above the oil called Gas-Cap Gas (SPE 2005; IEA 2010: 88).
Downstream refers to the oil and gas production process that includes refining crude oil into marketable products to transferring, distributing and selling the products.
Dry gas is consumer grade natural gas. The product consists of gas leftover after the liquefiable gas has been removed (Index 2012).
Flare gas is the “total volume of vented or flared gas” (SPE 2005: 5).
Flaring is the burning off of unused natural gas especially in remote wells when no market outlets are available nearby for the associated gas.
Gas liquids are differentiated from ‘natural gas liquids’ because ‘gas liquids’ usually refer to gas plant liquids, ethane and Liquid Petroleum Gases (LPG) (IEA 2010: 88).
Gas processing plants (GPP) process natural gas into marketable products.
Gas-to-Liquids (GTL) is a technology to produce diesel and naptha from natural gas.
Hydrocarbons are chemical compounds that are organic, because hydrocarbons are only constituted of hydrogen and carbon (SPE 2005). Methane (CH4) is the largest constituent of natural gas and is lighter than the others. Butane, ethane, isobutene, naptha (natural gasoline), diesel, pentane and propane are commonly marketable hydrocarbons. (See table A-1)
Liquid Petroleum Gases (LPG) refers to propane, ethane, butane and isobutene or a mixture of the products.
Midstream of the oil and gas value chain includes the pipelines, and the range of gas processing plants and oil-gas-separators that occur between upstream and downstream.
Natural gas is associated with crude oil reserves or in non-associated wells of only natural gas. Natural gas is mainly made of methane, small amounts of propane and ethane and varying proportions of carbon dioxide, nitrogen and hydrogen sulphide (SPE 2005; IEA 2010).
Natural Gas Liquids (NGL) are dissolved light hydrocarbons in associated or non-associated natural gas. The two types of NGLs are condensate (dissolved natural gas constituents that condense into a stable liquid in atmospheric pressure, LPGs) and other NGLs (gaseous HCs) (SPE 2005; IEA 2010:88).
Non-associated gas is natural gas that is extracted from dry natural gas wells that holds no crude oil.
Re-injection consists of replacing gas into a reservoir to support good pressure or because no economical use of the gas is available.
Sour natural gas is natural gas with a considerable amount of hydrogen sulphide (H2S). The constituents can include sulphur compounds and carbon dioxide as well as sulphur that are in high enough concentrations to necessitate removal to make marketable (SPE 2005).
Sweet natural gas contains low or no concentrations of sulphur and is used directly as “non-corrosive domestic heating fuel” without any processing (SPE 2005: 13).
Upstream is the portion of the oil and gas value stream that includes exploratory, development and production activities for cured oil reserves, NGLs and condensates (IEA 2010: 13).
Wet gas can be identified as natural gas in solution with underground crude oil or natural gas. The main HCs in a wet gas mixture are pentane, butane, propane, ethane and methane. The non-HC constituents are usually water vapour, carbon dioxide (CO2), hydrogen sulphide (H2S), nitrogen (N) and trace amounts of helium (IEA 2010: 93). Wet gas is also termed rich gas. Wet gas is distinguished by amounts of HCs heavier than CH4 making the gas more marketable. Wet gas can be processed into a fuel product (SPE 2005).
CHAPTER TWO
Chapter 2 is the literature review of published research, data and information on the monetization of associated gases. The topics are focused on strategies that may work well in Nigeria if other barriers are overcome. Studies have addressed the issues of law (Kyoto 1998; Osuoka and Roderick 2005; Allen and Mariere 2012) environmental impact (Ajugwo 2013; Ubani and Onyejekwe 2013; Hassan and Kouhy 2013; Pouhassan and Taravat 2014). Therefore, the chapter focuses on the research on monetization strategies including NGL, LGP, GTL and GTW for Nigeria. The results of some models that are developed to learn if the strategies are practical are reviewed. Alternatives for gas flaring in Nigeria must work from the technology point of view and also result in products to sell. The transportation infrastructure must be improved in order to market saleable products. The Nigerian government must set up regulatory guidelines and pass legislation PIB as soon as possible.
2.1 Stranded Gas
Stranded gas is a term that refers to reserves of gas that is ‘stranded’ or unavailable for use because the market is too far away or the gas cannot be used locally due to lack of transportation (pipelines, tanker trucks, barge,s or good road for example). The reason may also be economical. Associated gas is a sub-category of stranded gas when AGs are unusable due to economics or lack of infrastructure (gas-2 2011). Gas is transported through pipelines or as compressed natural gas (CNG) and liquefied natural gas (LNG). (See fig. 2-5) Monetized solids from stranded gas are hydrates, whereas liquids are in the form of Gas to Liquid (GTL). (See fig. 2-5) When stranded gas is converted to thermal heat or electricity and transmitted over lines or a grid, the process is called gas-to-wire (GTW). (See fig. 2-5) Combined cycle gas turbines (CCGT), compressed natural gas (CNG), and gas-to-fertilizer (GTF) are other options.
The West African Gas Pipeline (WAGP) is an example of local and export route for gas (Nwaoha and Wood 2014). (See fig. 2-1) The Trans Saharan Gas Pipeline (TSGP) is for large-scale exports and potentially exports to Europe (Nwaoha and Wood 2014). Gas is more difficult to transport than oil, because of the vaporous phase and because pressure changes occur in pipelines; that is why flaring has been used in the past (Marcano and Cheung 2007).
Figure 2- 2 West African Gas Pipeline (Nwaoha and Wood 2014)
2.1 Gas Flaring
Most of Nigeria’s natural gas reserves are located in the Niger Delta. The amount is estimated to be approximately 182 trillion cubic feet (Tcf). Flaring and venting release pressure built-up in the process of extracting fossil fuels with wells. Flaring is used as a safety outlet for gasses when the refinery process has a problem such as a process sector must shut-down or start-up, or when there is a refinery equipment breakdown (EPA 2010).
The tribes of modern Nigeria always knew that oil was available, but not until Europeans became interested in exploiting oil for energy did extraction of massive amounts of oil start. Flare gas is the total volume of flared or vented gas consisting of associated and non-associated gases (SPE 2005).Associated gases are the gasses that are dissolved in the reservoir oil until the oil reaches the surface and the layer of gas on top of the oil that is usually called Gas-Cap Gas (SPE 2005; IEA 2010: 88). Non-associated gas is natural gas extracted from a dry gas reservoir containing no crude oil (SPE 2005). Dry gas is also called lean gas because the hydrocarbon compounds that make up dry gas are lighter than methane. Dry gas does not require treatments like associated gas in order to sell.
The associated gases produced unintentionally with the extraction of oil decrease the amount of oil produced and lower the efficiency of projects. Nevertheless, the gas was considered waste in the past, so the associated gases were burned off using gas flaring at the well sites. Gases are difficult to transport and the infrastructure was not available. Marketing of gases cannot proceed without good pipelines and roads to take gasses to market. And, in the past damages to health, environment, and crops in the area was not taken into consideration. The oil was exploited by international gas companies’ until the Nigerian National Petroleum Company (NNPC) was organized and joint ventures are now common between NNPC and international corporate petroleum companies.
2.1.3 Reasons to reduce gas flaring
Times have changed and energy demand is growing as global oil reserves are diminished. The international community using the Kyoto Treaty is calling for a decrease in gas flaring as one of the methods to lower the greenhouse gasses (GHG) and toxins entering the atmosphere. In Nigeria, health and environment negatively impacted due to gas flaring. In Nigeria, approximately 1000 standard cubic feet (scf) per oil barrel (Anothny and Anyadiegwu 2014). Anothny and Anyadiegwu (2014: 2) calculated that about2.2 barrels of oil are produced per day; therefore, about 2.2 billion scf of AG are produced each day. The NAPIMS (2013) reported that approximately 63 percent of AG is flared per day where crude oil is produced in Nigeria. AG is now regarded as a valuable resource that can be marketed (Marcano and Chenug 2007). The amount of stranded gas reserves plus flared gas resources “will create added-value opportunities and protect the environment (Aldorf 2008).
Although Nigeria has great oil reserves compared to the rest of the world, recovery of gas flaring is necessary. The Nigerian government has called for a moratorium of gas flaring, but with no success. In Nigeria, health and environment are diminished greatly due to gas flaring. The wasted gas is equal to wasted profits. Fortunately, stopping gas flaring is also an opportunity for Nigeria to market gas products. Finding good alternative strategies that give optimum results for monetization of associated gasses are a great opportunity for Nigeria to stop gas flaring with its negative and impacts and start processing natural gas products to market. Marketing non-associated and associated gases instead of gas flaring offers opportunities for Nigeria to grow economically (Aldorf 2008). The higher the income of an individual, the more easily the products from AG can be afforded (Rehfuess, Bruce and Smith 2011).
2.1.4 Status of reserves
The Niger Delta fossil fuel reserves contain about 183 trillion cubic feet (tcf) natural gas (Giwa et al. 2014). In 2003, the Department of Petroleum Resources (DPR) estimated a total of probable, potential and proven natural gas reserves of approximately 300 Tcf (Stanley 2009). Gas flaring takes place over an area of approximately 75,000 km2 in the Niger Delta alone (Sonibare, Alimi, Jarvie et al. 2008).
2.1.5 Societal reasons for flaring recovery
Nigeria must meet the challenges of reducing greenhouse gasses (GHG) for many reasons, including the Kyoto protocol and meeting the goals of the United Nations MDGs (2013). In Africa, Nigeria releases the highest concentrations of GHG; and in the world, Nigeria is one of the highest producers of carbon dioxide (CO2) (Orimoogunje, Ayanlade, Akinkuolie et al. 2014). Gas flaring is one of the worst activities for releasing GHGs into the atmosphere; the polluting contaminants include CO2, carbon monoxide (CO), nitrogen oxides (NOx), sulphur oxides (SOx); as well as photochemical oxidants, hydrogen sulphide (H2S), particulate matter, hydrocarbons (HCs) and ash (Giwa, Adama and Akinyemi 2014). The negative impacts are devastating to health, the environment, the economy and society.
2.1.6 Challenges to flaring recovery
A case study on Nigeria by CGFR (2011: 12) reported that only “limited success in reducing gas flaring” because no downstream markets are developed, conflicts of interest within the government slow the process and the enforcement of regulations and contracts is poor (Rozhkova 2010:10).All of these challenges need to be overcome and Nigeria has already successfully demonstrated that it is possible with production of LNG and Power Plants (NNPC 2013; Anothny and Anyadiegwu 2013)
2.2 Nigerian gas flaring
2.2.1 Nigeria’s Global Ranking for Gas Flaring
Historically, Nigeria was the top ranked country pre volume of associated gas by gas flares, but decreased flaring has allowed Nigeria to take second place, with Russia in first place for volumes of associated gas flared (Mathew 2014). Several ideas have been raised by the Nigerian government to implement the use of associated gas for power generation (electricity) this policy is yet to take effect in order to mitigate flare rate and become the least contributor to the emission of GHGs (OECD 2013). No efforts have so far been put in place by the Nigerian government towards the effective management of the flare rate of multinational companies and their various operations according to national sources (EIA 2013; OECD 2013). But the government has been working within all the internal limitations inherent in the Nigerian government at this time, and those are discussed further below.
In 2004, 24.1 Bcm associated gases were flared in Nigeria (14.7 Bcm in Russia) and in 2005, 25.5 Bcm emissions from Nigeria (and 14.9 Bcm from Russia) (Buzcu-Guven, Harriss, Hertzmark 2010: 14). Therefore, Russia and Nigeria are now the leading countries with the highest amount of gas flared in the world, with Russia and Nigeria in the 1st and 2nd position, respectively (EIA 2013). According to the EIA report (2013), it was recorded that Nigeria alone can be accounted to contribute approximately 13.5 per cent of the total gas flared and vented compared with Russia with about 40 per cent due to the large amount of gas reserves located in Russia. For many years, Nigeria ranked number one in the world for total volume of associated gasses flared in 2004 and 2005 (Buzcu-Guven et al. 2010: 14). According to the EIA report (2013), the top ten contributors of gas flaring in the world are Russia (27%), Nigeria (11%), Iran (8%), Iraq (7%), United States (5%), Algeria (4%), Kazakhstan (3%), Angola (3%), Saudi Arabia (3%), and Venezuela (3%).
Figure 2- 4 Gas flaring decreased in Nigeria from 1996 to 2011 (Mathew 2014:2)
2.2.2 Flaring area in Nigeria
Nigeria’s gas flaring activities amount to about 23 billion cubic metres (Bcm) annually (Nkwocha and Pat-Mbano 200). The total amount of natural gas in the reserve in the Niger Delta is estimated at 159 trillion cubic feet (tcf) (Economy 2010). Economy Watch (2010) reports that the gas flaring amounts to approximately 40 percent of the natural gas produced in the Nigeria, because of the lack of petroleum production infrastructure. The largest area for gas and oil exploration and transportation activities is along the cost of the Gulf of New
Guinea. (See fig. 2-1) The area near the coast particularly in the Niger Delta is congested with oil production facilities and gas flaring activities. (See fig. 2-2)
A 24-year research study observed and analysed gas flaring activities in 70,000 km2 of the Niger Delta (Osang, Obi, Ewona, Udoimuk et al 2013). The study took place from 1989 to 2012 when the amount of heat radiation from flaring activities was evaluated (Osang et al. 2013). The data used was gathered from the National Population Commission, the Nigeria Meteorological Agency, and the NNPC. The mean temperature for the 24 years due to gas flaring was reported as approximately 27°C (Osang et al. 2013: 961). The researchers reported that pollution due to heat radiation was typical of gas flaring stations in the Niger Delta region (Osang et al.2013). The problem was identified as causing the unrest including demonstrations, strikes and violent protests between the “oil exploitation companies and (in)habitants of (the) Niger Delta” (Osang et al. 2013: 963). The statistical calculations carried out by the researchers indicated “a high and positive change of approximately 96 percent” (Osang et al. 2013). Recommendations resulting from the research included educational training sessions to environmental safety to the general public, health agencies and others; stop flaring AG since it has been illegal since 1984; determine site-specific health risks; evaluate health of vulnerable populations like children and people experiencing respiratory diseases; develop “health-based rules and guidelines”; track and refine methods for recording environmental pollutants; carry out health risk assessments, and “establish more Meteorological Agencies” (Osang et al. 2013: 964).
The reason why Russia is a leading gas flaring nation is due to the fact that it is a major gas producing country with large amounts of gas reservoirs and a specific storage capacity for gas, so in order to prevent any adverse occurrence such as explosion due to the leakage, flaring is considered to be essential unlike Nigeria; a country that contains less gas reservoirs but more crude oil reserves (EIA 2013). Flaring estimates are more accurate since NOAA National Geophysical Data Centre (NGDC) developed technology to identify gas flaring activities and estimate the volume amount (using heat sensitive technology) from satellites. NGDC uses “Google-Earth high resolution image data to separate urban lights from flaring” (Buzcu-Guven et al. 2010: 15). Measurements taken with the satellite program are calibrated with data reported from each country” (Buzcu-Guven et al. 2010). Every effort is made to use the most reliable data available; the measurements are more reliable today than they were even a few years past.
The gas flaring in Nigeria has decreased from a high in 2002 of approximately 76,000 Mcm to a low of 13,000 Mcm in 2009. (See fig. 2-4) In 2013, NNPC reported that flaring amount was approximately 11590 Mcm, the lowest amount recorded in about 25 years. The amount change in gas production from 2012 to 2013 was a decrease of six percent for the 25 companies reporting (NNPC 2013). From 2012 to 2013, produced gas 82 percent was utilized and 18 percent was flared. The gas production data from NNPC is reported for ten years with each year separated in categories of produced gas and amount and utilized gas amounts. The gas produced each year is used as fuel, converted from fuel to EPCL, sold to third parties, converted to NGC, reinjected, gas for LNG, gas for LPG/NGL as feedstock to EPCL, gas lift and the amount of gas flared is reported by mscf and percent of total gas produced NNPC 2013). The equipment used in Nigeria this time is from Technip (2014).
