Economics of gas to wire technology applied in gas flare management

Our environment is increasingly being endangered by the introduction of greenhouse gases which are continuously produced from gas flaring processes. Currently, total volume of gas flared globally amounts to 100 billion cubic meters (BCM) annually. Nigeria flares about 18.27 BCM and loses approximately $2 billion yearly. This statistics indicates the urgent need to conduct research aimed at addressing both the environmental impact of gas flaring and the economic implications. This research studies the economic viability of using gas to wire (GTW) technology as an integral component of gas flare management. The investigation critically evaluates the cost implications and impact of the GTW technology. The research method involves the interview of key experts and practitioners in the field. The interviews are structured to obtain information on the total volume of gas produced, utilised and flared in two major gas and electricity producing firms in Nigeria. The data obtained show that the gas producing company flares about 8.33% of its total production which is in excess of the 6.6 million cubic meters (MCM) utilised daily. This study demonstrates that in the Nigerian oil and gas sector, one unit of gas turbine having 0.93 MCM gas consumption capacity generates 150 MW of electricity daily. It is found in result evaluation that 50 turbines are sufficient to consume an average of 46.5 MCM of gas daily to generate 7500 MW of electricity. Economic analysis shows that there is an annual net profit of £2.68 billion gained from flare prevention and overall environmental protection.