How nigeria can save 10b yearly from flared gas

What a great question!

Flared gas, also known as gas flaring, is the practice of burning off natural gas that is associated with crude oil production. In Nigeria, it is estimated that over 2 billion cubic feet of natural gas is flared daily, which is equivalent to about 10% of the country's total gas production. This not only wastes a valuable resource but also contributes to greenhouse gas emissions and environmental pollution.

To save 10 billion naira (approximately $27 million USD) yearly from flared gas, Nigeria can consider the following strategies:

  1. Implement a gas flare reduction policy: The Nigerian government can implement a policy to reduce gas flaring by setting targets for gas utilization and imposing penalties on companies that fail to meet these targets.
  2. Invest in gas processing infrastructure: Building gas processing facilities can help to separate the gas from the oil and use it for power generation, industrial processes, or even domestic consumption.
  3. Promote gas-based power generation: Nigeria can encourage the development of gas-based power generation plants to reduce reliance on diesel generators and other polluting energy sources.
  4. Encourage the use of gas for industrial processes: The government can incentivize industries to use gas as a feedstock for their processes, reducing their reliance on other energy sources.
  5. Develop a gas transportation infrastructure: Building pipelines and other transportation infrastructure can help to connect gas production areas to consumption centers, reducing the need for flaring.
  6. Implement a gas flare monitoring system: A monitoring system can help to track gas flaring levels and identify areas where flaring is most prevalent, allowing for targeted interventions.
  7. Provide incentives for gas utilization: The government can offer incentives, such as tax breaks or subsidies, to companies that invest in gas utilization projects.
  8. Develop a gas storage infrastructure: Building gas storage facilities can help to store excess gas for use during periods of high demand or for injection into the power grid.
  9. Promote the use of gas for transportation: Nigeria can encourage the use of compressed natural gas (CNG) or liquefied natural gas (LNG) as a cleaner-burning alternative to traditional transportation fuels.
  10. Collaborate with international organizations: Nigeria can collaborate with international organizations, such as the World Bank or the United Nations, to access funding and expertise for gas flare reduction projects.

By implementing these strategies, Nigeria can reduce gas flaring, save 10 billion naira yearly, and contribute to a cleaner and more sustainable energy future.

Here's a rough estimate of the costs associated with implementing these strategies:

Total estimated cost: 15.7 billion naira (approximately $41.7 million USD)

Note that these estimates are rough and may vary depending on the specific projects and implementation strategies chosen.