Throughout the globe billion of cubic meters of natural gas is flared annually at oil production sites, wasting valuable resources that could be used to support economic growth. The hydrocarbon constituents of flare gas tend to be methane and Liquid Petroleum Gas (LPG), which could be used in industrial processes and power generation. Aside from operational reasons, the main reason for gas flaring is the lack of gas pipeline connectivity and/or a captive gas market to directly utilse the gas. However, technological advances have resulted in systems that enable flare gas to be separated into its hydrocarbon constituents, liquefied or compressed and either stored or transported to key demand centres. Thus, turning flare gas into a usable resource.
SPI has been involved in a number of initiatives to reduce gas flaring. Please find some examples below:
In Nigeria 8bcm of gas is flared annually, mainly in the Niger delta. For residents in the nearby communities routine flaring is causing respiratory problems, skin rashes and eye irritations, as well as damaging agriculture due to acid rain. SPI has worked with a specialist flare gas capture technology provider and oil producers in the Niger Delta to capture, store, transport and process flare gas into two very valuable products: methane and LPG. The methane will be utilised domestically and transported to demand centers via a virtual pipeline system; however, the LPG will be exported for sale on the international market. Commercially the sale of LPG would need to underpin the project economics. This project is still in the planning phase.