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Home Business News Politics

Nigeria Is Still Flaring 20% Of Its Gas

Editor by Editor
September 21, 2015
in Politics
Gas flaring
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  • The Managing Director, Energy and Mineral Resources Limited (EMR), Abiola Ajayi, has said that at least, 20 per cent of associated gas produced yearly in the country is still being flared, enough to generate 6,000 megawatts (Mw) of electricity.
  • Ajayi stressed the need for more investments in the sector to monetize the gas instead of burning it. He said International Oil Companies (IOCs) have failed to contribute to the domestic gas obligation, which has adversely affected output of the power plants in the country.
  • He also said the power sector, which requires about 70 per cent of gas produced for local consumption could not afford a market driven price, which is the reason for the unwilling disposition of the IOCs to commit to domestic supply.
  • Ajayi called for the establishment of a gas department within the Ministry of Petroleum Resources to oversee the execution of regulations in accordance with the Department of Petroleum Resources (DPR).
  • He said for gas supply to be sustainable, the government must ensure, among other things, a bankable commercial framework, gas investment drive, and address the issue of pipeline vandalisation as well as pricing based on willing-buyer-willing-seller.
Tags: NNPC Nigeria NewsOIl and Gas NewsPower Sector
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