Nigeria Loses 20,100 GWh Of Power In 9 Months Due To Gas Flaring Energy Crisis Deepens

Nigeria Loses 20,100 GWh Of Power In 9 Months Due To Gas Flaring Energy Crisis Deepens

Nigeria has reportedly lost about 20,100 gigawatt-hours (GWh) of potential power generation in the first nine months of 2024 due to continued gas flaring by oil companies. This marks a 5.5% increase from the 19,000 GWh lost during the same period in 2023..….CONTINUE READING 

Gas flaring, which has persisted for decades, remains a significant challenge for the country, affecting its ability to generate sufficient electricity for households and businesses. Currently, Nigeria struggles to produce more than 4,000 megawatts (MW) of electricity, partly due to limited gas supply to Electricity Generation Companies (GENCOs).

During the first nine months of 2024, gas flaring increased by 8%, reaching 200.5 million standard cubic feet (Mscf), compared to 190.2 Mscf recorded in 2023. Data from the National Oil Spill Detection and Response Agency (NOSDRA) estimates the value of the flared gas at $701.8 million. Defaulting oil companies, including International Oil Companies (IOCs), could face fines totaling $401 million for their role in the flaring.

NOSDRA’s report indicates that gas flaring in onshore fields increased by 10%, with 105.5 Mscf flared, compared to 95 Mscf in offshore fields. The flared gas is equivalent to 10.7 million tonnes of carbon dioxide emissions.

Despite efforts to curb gas flaring since the 1950s, it remains a persistent issue, releasing harmful gases into the atmosphere.

Power experts note that Nigeria’s ongoing grid collapses, such as those triggered by inadequate gas supply to power plants, are likely to continue unless the situation improves. Adetayo Adegbemle, Executive Director of PowerUp Nigeria, explained that grid collapses occur when the demand from consumers significantly outweighs the supply, leading to frequency variations that damage generating plants and disrupt economic activities reliant on electricity.

Adegbemle also emphasized the need for a Supervisory Control and Data Acquisition (SCADA) system to stabilize and manage the grid. However, despite substantial investments, there is no clear timeline for when the Transmission Company of Nigeria (TCN) will complete the installation of this vital system.