In terms of volume of gas flared, the West African country still ranks in the top 10 gas-flaring countries in the world. Per World Bank data, gas flaring accounts for $20 billion of the global economy in 2018.
The latest PwC publication titled, ‘Assessing the impact of Gas flaring on the Nigerian Economy’, showed that despite the reduction in the percentage of gas flared in Nigeria, the volume remains among the highest in the world.
The publication, which is the first of a three-part series on the Nigerian Gas sector, highlighted the industry issues and challenges as well as assess the opportunities across the value chain in addition to providing an outlook for the sector.
With about 300 major gas flare locations in Nigeria, it poses a serious environmental and health threat. The International Energy Agency (IEA) believes that this phenomenon will steadily drop to zero-level by 2030 due to individual and joint government commitments via regulatory pledges to the cause.
According to the publication, total gas flared in Nigeria accounted for 6.9% of the top 10 gas-flared countries in 2018.
To reduce gas flaring, Nigeria will need to plant 7.5 million hectares of trees. It will absorb 638 million cubic tons of carbon from gas glaring and other sources of carbon emission. This will amount to $94 million (N28.76 billion) annually, the publication said.
Analysis by PwC Nigeria showed that the monetary economic value addition that could have been recovered from derivatives of natural gas flared in 2018 totaled $2.73 billion.