Gas tariffs and gas flaring have significant implications for economic growth in different countries. In Nigeria, the removal or reduction of tariffs on compressed gas imports is seen as a boost for the gas economy, promoting domestic gas consumption, and incentivizing investment in gas infrastructure. This aligns with President Bola Tinubu's vision for a thriving gas economy and sends a positive signal to investors. On the other hand, gas flaring in Nigeria has resulted in significant economic losses, with the country losing $16 trillion in the past 10 years. Gas flaring is associated with wasted energy, environmental and health concerns, and contributes to global economic losses and environmental damage. To address this issue, President Bola Tinubu should enforce penalties for gas flaring and fully enforce the Nigerian Oil and Gas Industry Content Development Act. Additionally, responsible fiscal and resource management practices should be adopted, and investments in technology to capture and utilize natural gas should be made. Repurposing gas flaring sites for productive uses can provide employment opportunities and address gas shortages. It is urgent to stop gas flaring and maximize Nigeria's natural resources.
In a recent development, NIGUS International, a Nigerian firm, has signed a $1 billion agreement with Beijing Zhogmin Xinjunlong New Energy Technology Company Limited, a Chinese firm, to fund and develop gas flaring solutions for Nigeria [01b25d12]. The partnership aims to convert flared gas into Gas-to-Liquid (GTL) synthetic diesel, Liquefied Natural Gas (LNG) for export, and Liquefied Petroleum Gas (cooking gas). The GTL technology will allow Nigeria to turn gas into liquid and create LNG, reducing infrastructural costs. The project aligns with President Bola Tinubu's directive to end gas flaring and promote green sustainable energy production. The partnership is expected to create jobs and attract global green funds. This initiative is a significant step towards addressing the issue of gas flaring in Nigeria and promoting renewable energy [01b25d12].
Nigeria is facing increased pressure to reduce gas emissions due to a new law by the European Union that places a methane emissions limit on all fossil fuel imports from 2030 [3c0c5740]. Gas flaring in Nigeria has not significantly decreased despite the introduction of the Nigerian Gas Flare Commercialisation Programme. Energy firms argue that gas flaring is done for safety and maintenance purposes, but the International Energy Agency (IEA) states that it is an extraordinary waste of money and has negative impacts on climate change and human health. Methane emissions, which are the second biggest contributor to global warming, have been linked to health conditions such as cancer and cardiovascular diseases. The EU's new law aims to reduce methane emissions and improve air quality. Nigeria ranks ninth among the top 10 methane-emitting countries in the world and contributes half of its emissions from the energy sector. The EU's methane emissions limit could undermine Nigeria's efforts to strengthen trade relations with the bloc and scale up its gas supply. Nigeria needs to make concerted efforts to cut down on energy-related methane emissions to avoid heavy penalties. The country has been urged to clean up the environmental damage caused by gas flaring and compensate affected communities. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have not responded to inquiries about their plans to meet the EU's leak detection and repair rule and hold energy companies accountable for misleading emissions data. Nigeria needs $1.5 billion to reduce methane emissions in its oil and gas industry between 2023 and 2030, according to the IEA. The EU's new rule requires operators to detect and fix leaks and conduct surveys of existing sites. Gas flaring in Nigeria can produce 600,000 metric tonnes of LPG per year and generate 2.5 gigawatts of electricity, but the country still faces electricity shortages and frequent blackouts.
In the United States, an Austin-based company called Ameredev has been fined for flaring that led to over 7.6 million pounds of excess gases known to cause respiratory issues [aaf0874c]. The company reached a record settlement of $24.5 million with the state of New Mexico over air pollution violations at natural gas gathering sites in the Permian Basin. The flaring by Ameredev resulted in the release of hydrogen sulfide, sulfur dioxide, nitrogen oxides, and other gases that contribute to respiratory issues and climate change. The excess emissions could have supplied nearly 17,000 homes for a year. Ameredev has stated that it has not experienced any flaring-related excess emissions events in the past four years due to investments in advanced technologies and operational enhancements. As part of the settlement, Ameredev will undergo an independent audit of its operations, submit monthly reports on emission rates, and propose a plan for inspections or install monitoring equipment. The state Environment Department is also investigating other potential pollution violations in the area [aaf0874c].
The issue of gas flaring and its impact on the environment and public health is a global concern. It is crucial for companies and governments to take proactive measures to reduce flaring and invest in technologies that can capture and utilize flared gas. These efforts will not only help combat climate change but also protect the well-being of communities affected by gas flaring.