Economic Projections and Power Supply In Nigeria: The Impact Of Utilizing Gas Instead Of Flaring

Abstract

Gas flaring has been a persistent issue in Nigeria, leading to significant environmental, economic, and health consequences. Flaring intensity continues to increase as a result of lack of capacity to dissociate and harness associated gas effectively and efficiently for economic benefits. Although efforts are in place to curtail excessive flaring, deliberate technological intervention is needed. In this paper, the potential economic and energy benefits of utilizing the natural gas that is typically flared reported to be approximately 905 billion cubic metres for a period of four years as reported by the Nigerian Upstream regulatory Commission was studied. The analysis highlights how Nigeria could economically benefit by capturing and utilizing flare gas for power generation, industrial processes, and exports, instead of allowing it to be wasted. It provides a detailed assessment of the energy potential from flare gas, its economic contributions through job creation, industrial development, and improved energy access, and its role in enhancing Nigeria's power supply. By capturing and utilizing flare gas, Nigeria could reduce its reliance on imported energy, mitigate environmental damage, and foster significant economic growth.