Development of a framework for reduction of flare gas in an oil and gas processing environment

Gas flaring is a major contribution to global greenhouse gas burden with a total volume of 100 billion cubic meters (BCM) flared annually. Russia is responsible for 35.5 BCM annually while Nigeria burns 18.27 BCM, equated to approximately $2 billion yearly. There is urgent need to therefore conduct research aimed at management of gas flaring with large economic and environmental benefits. This study has developed a sustainable framework to manage flare gas, incorporating inputs from government, legislation, industrial partners that generate energy, and environmental monitoring and enforcement agencies towards achieving significant reduction in gas flaring. The research method used semi-structured interview of key practitioners in an oil and gas industry (GASPROC) to obtain useful data on gas produced and flared; as well as gas utilised in two case companies - (ELECPROC 1 and ELECPROC 2). Data obtained were analysed using NVIVO software, and the data highlighted details of volume of gas utilised to generate electricity, the amount of electricity generated, and the volume of flared gas. Overall, the case company (GASPROC) flared about 8.33% of its total annual gas production (6.6 million cubic meters). Study recommends that 50 units of gas turbine with gas consumption and electricity generation capacities of 0.93 MCM and 150 MW each would be sufficient to utilise the flare gas and produce 7500 MW of electricity daily. A capital investment of £1.64b will generate a net profit of £1.26b/year, with a rate of return of investment on 16.3%. It is anticipated that adoption and utilisation of the framework will significantly reduce the volume of flare gas with considerable economic and environmental benefits.