The Federal Government will impose $49m (N22bn) fine on oil and gas firms operating onshore for flaring 24b Standard Cubic Feet of gas valued at about N40b ($86m) between January and February 2023.
According to latest gas flare data by the National Oil Spill Detection and Response Agency, the companies operating onshore will pay the penalties for violating the gas flaring rule.
“Companies operating onshore flared 24.5 billion SCF of gas valued at $85.8 million, with $49 million penalties payable,” the agency wrote. Gas is burnt off or flared, as part of the oil production process.
However, the Federal Government had in recent times led campaigns for gas monitisation as against flaring. The report said companies flared 19.14 billion SCF of gas in January and 14.04 billion SCF of gas in February 2023, contributing 1.3 million tonnes of carbon dioxide emission, with power generation potential of 2,500 gigawatts hours.
On the other hand, companies operating offshore flared 25.8 billion SCF of gas valued at $90m; capable of generating 2,600 gigawatts hours of electricity and had an equivalent of 1.4 million tonnes of carbon dioxide emission.
