An Economic Approach to Gas Flare-down in a Selected Field in Nigeria

Abstract

Abstract The paper evaluates the economic and financial viability gy of flaring reduction options in a selected field in Nigeria. ia. Consequently, this research will focus on Identifications of current options in gas utilization.Factors affecting the selection of a particular option. Nigeria flares 17.2 billion m3 of natural gas per year in i the Niger Delta. The natural gas flared is more than any ther country in the world. Nigeria has reserves of about 187 trillion cubic feet of natural gas, and 3.5 billion cubic feet (1,000,000,000.m3) of Associated Gas (AG) produced ann annually, 2.5 billion cubic feet (70,000,000m3), or about 70% is wasted as a result of flaring. This equals about 25% of UK's total natural gas consumption and it's the equivalent of about 40% of the entire African continents gas consumption in 2001. The annual gas wasted due to flaring g is estimated to cost the country about $2.5 billion annually. This gas flaring expends huge amount of energy and causes environmental degradation and this paper focuses on the benefits that can be derived from gas and its impact on the local economy and the environment. Global Gas Flaring Reduction (GGFR) initiative was used to perform an economic and financial analysis. Using inputs like, daily gas production, price of diesel and fuel, distance to power grid amongst others. This paper therefore concludes that the local livelihood in the Niger Delta will be significantly improved by promoting a shift from gas flaring to gas gathering for use as a gaseous fuel and for electricity generation. Also, environmental prone diseases will be reduced and agriculture will be enhanced in the Niger delta area. Although there is a great technical and cost involvement, this project is a worthy investment. The gas flare-down will also help to combat Global climate change which United Nations Environment programme (UNEP) is advocating throughout the world in Copenhagen in December 2009 which is mostly caused by global warming.