Nigeria’s gas flaring reduces to 36 %

From an average gas flare rate of 68 % in 1999, the federal government announced it has attained a reduction in true gas flare by 36 %. The reduction is however attributed to various schemes put in place by the federal government towards the development and utilization of natural gas in the country since 1999.
Minister of state for petroleum resources, Dr Edmund Daukoru made the disclosures the at the 2006 ministerial press briefing, adding that gas production has also risen by 13.8 % from 176.46 tcf in 2002 to 187.44 tcf in 2005.

According to the minister "in 1999, the average gas flare out rate was 68 %, however, with the various schemes put in place for the development and utilization of natural gas in the country since 1999, the flare out rate has now dropped to about 36 %, coupled with a number of gas based projects either being executed or planned in order to achieve government's aspiration of zero gas flaring by 2008."
He also added that "the nation's gas reserves rose from a level of 176.46 tcf in 2002 to 187.44 tcf in 2005. Gas production (associated and non-associated) increased from 1.878 tcf in 2002 to 2.137 tcf in 2005, representing an increase of about 13.8 %."

Dr Daukoru also stated that about $ 250 mm is expected to be saved annually from the Nigerian Petroleum Exchange (NIPEX), an industry electronic market place which took off in December 2005 with the aim of enhancing efficiency and speed of contract processing, procurement as well as cost reduction.
He further explained that the establishment of the oil and gas sector reforms and implementation committee to articulate proposals towards the restructuring/liberalization and privatization of the petroleum sector have spurred a number of legislations and projects including the Downstream Gas Act and the National Gas Master Plan.

"The Downstream Gas Act is to ensure a level playing field in the sector. It has already received federal executive council approval and has been forwarded to the National Assembly for consideration, while the national gas master Plan is aimed at realigning the gas sector to ensure the realization of the national aspirations in the sector" the minister stressed.
Group managing director of the NNPC, Engr. Funsho Kupolokun disclosed on the occasion that NNPC has awarded the contract of repairing some of the vandalized pipelines in Niger-Delta, and would soon commenced the repair owing to assurance received by President Olusegun Obasanjo on stability in the region. He however refused to name the contractor, citing security reasons.