DEVELOPMENT OF A SUSTAINABLE FRAMEWORK TO MANAGE FLARE GAS IN AN OIL AND GAS ENVIRONMENT: A CASE STUDY OF NIGERIA EMEKA NNANNA OJIJIAGWO DOCTOR OF PHILOSOPHY 2017 Development of a Sustainable Framework to Manage Flare Gas in an Oil and Gas Environment: A Case Study of Nigeria Emeka Nnanna Ojijiagwo BSc (Hons), MSc. Faculty of Science and Engineering University of Wolverhampton United Kingdom A thesis submitted in partial fulfilment of the requirement of the University of Wolverhampton for the Degree of Doctor of Philosophy July 2017 DECLARATION I certify that this work has not beenaccepted in substance for any degree, and is not concurrently being submitted for any other degree other than that of Doctor of Philosophy (Ph.D.) being studied at the University of Wolverhampton. I also declare that this work is the result of my investigations, except where otherwise identified by references and that I have not plagiarised the works of others. …………………………… ………………………… Emeka Nnanna Ojijiagwo Date (Student) i DEDICATION This thesis is dedicated to God Almighty for His guidance and direction from beginning to the end of the Ph.D. research. ii ACKNOWLEDGEMENTS I would like to thank God Almighty for His infinite grace, love, wisdom, and strength throughout my Ph.D. programme. Without God, this would have been impossible. I am very grateful to my Director of Studies, Professor Chike F. Oduoza for his constant academic guidance, encouragement, and support. Your understanding and patience were beyond my understanding. I absolutely appreciate. I am also appreciative of my second supervisor, Dr. Nwabueze Emekwuru for his thoughtful supports and contributions towards the completion of this programme. To my loving, caring, and ever understanding parents, HRH Sir and Lady S. Ojijiagwo, words cannot express my sincere gratitude for the spiritual, moral, and financial supports that you have always provided for me. To my sister, Chichi Ojijiagwo you have always been special to me, and in the course of these past four years, you have demonstrated more love: you will always have a special space in my life. I am very grateful to all members of my family for their various supports – Ikenna, Gordon, Uchenna, Uloma, Ugochi, Chinonyerem and Charlyn. God will continue to bless you all. Specially, I want to thank Dr. Emeka H. Amalu for his sincere academic support and kindness. I am also very grateful to the staff of Okoloma gas plant, Afam power station, and Rivers State independent power station, for their special contributions towards this research. God bless you all. Finally, special thanks to my friends and colleagues, who have shown love, support, kindness in various ways. Solomon Adjei, Nengi Odimabo, Bryan McCarthy, Chimene Obunwo, Pastor Kehinde Joshua, Emeka Ogbuehi, Deinsam Ogan, Osarumen Ogbomo, Williams Oko, Kachi Okogbue. I really appreciate. iii ABSTRACT Associated natural gas is produced as a by-product from crude oil exploration and production. When perceived as a non-desirable product, it is wasted during gas flaring. Globally, about 100 Billion Cubic Meters (BCM) of gas is flared annually, leading to release of about 300 million tons of carbon dioxide yearly into the environment. Russia and Nigeria flare more than other countries to the tune of 35.5 and 18.27 BCM, respectively. The consequence of gas flaring has continued to pose significant threats to the environment as well as the economy of oil and gas producing countries. Therefore, this research is aimed at developing a sustainable framework that could enable management of flared gas in an oil and gas environment by generating energy and also minimise environmental impact that arises from gas flaring process. Three major research gaps were identified and they include lack of existing gas flare management framework in Nigeria, lack of economic evaluation of gas to wire (GTW) technology for flared gas reduction and, lack of cordial relationship and understanding between oil and gas producing/flaring companies and electricity producing sectors towards gas flare management. A qualitative research strategy was employed – utilising the single case study approach with embedded units of analysis. Three case study companies were used - one oil and gas producing company, and two electricity-generating companies. Data collection involved semi structured interviews, documentation, observation, and review of relevant literature. Data was analysed using QSR Nvivo version 10. A framework for flared gas reduction was developed based on literature review and also from information made available by experts operating in the oil and gas and electricity sectors. The framework shows inputs from various stakeholders, as well as an evaluation of volume of gas produced, utilized and flared. An economic assessment of GTW technology was carried out to determine the cost effectiveness of the framework. Findings from the study showed that GTW is a viable means of management, and could reduce the total volume of flared gas in Nigeria to 7.1%. This reduces environmental, health and safety hazards. It is also economically profitable. A total capital investment of £1.64b is required in the Nigerian context, with a net profit of £1.26b/year, and has a rate of return of investment of 16.3%. This study has demonstrated that GTW is a sustainable technology for reducing flared gas in Nigeria and other countries facing similar challenges as Nigeria; and capable of minimising adverse environmental and health impact associated with gas flaring. Therefore, the developed framework is also recommended for effective management of flared gas in such countries. iv TABLE OF CONTENTS DECLARATION ......................................................................................................................... i DEDICATION ........................................................................................................................... ii ACKNOWLEDGEMENTS ...................................................................................................... iii ABSTRACT .............................................................................................................................. iv TABLE OF CONTENTS ........................................................................................................... v LIST OF FIGURES ................................................................................................................... xi LIST OF TABLES .................................................................................................................. xiv LIST OF ABBREVIATIONS ................................................................................................. xvi CHAPTER ONE – INTRODUCTION TO STUDY .................................................................. 1 1.1 BACKGROUND OF THE STUDY..................................................................................1 1.2 RESEARCH SCOPE AND MOTIVATION ....................................................................2 1.3 RESEARCH QUESTIONS ...............................................................................................4 1.4 AIM ...................................................................................................................................4 1.5 OBJECTIVES ...................................................................................................................4 1.6 RESEARCH DESIGN ......................................................................................................5 1.7 CHAPTER SUMMARY ...................................................................................................8 CHAPTER TWO: REVIEW OF GAS FLARING, ENFORCEMENT AND MONITORING POLICIES, ADVERSE IMPACT AND MANAGEMENT TECHNOLOGIES ......... 9 2.1 INTRODUCTION .............................................................................................................9 2.2 GAS FLARING AND FLARING IN SOME SELECTED COUNTRIES .......................9 2.2.1 Gas Flaring In Norway ............................................................................................13 2.2.2 Gas Flaring In Netherlands ......................................................................................16 2.2.3 Gas Flaring In Qatar ................................................................................................17 2.2.4 Gas Flaring In Ecuador ............................................................................................18 2.2.5 Gas Flaring In Russia ..............................................................................................20 2.3 OVERVIEW OF NIGERIA AND THE NIGER DELTA ..............................................22 v 2.4 GAS FLARING IN NIGERIA (NIGER DELTA REGION) ..........................................25 2.4.1 Nigerian Government and Gas Flaring: The Legal Framework ..............................26 2.4.2 Institutional Framework for Gas Flare Management in Nigeria .............................28 2.5 RECOMMENDATIONS ON GAS FLARE REGULATION FOR NIGERIA ..............29 2.6 ENFORCEMENT AND MONITORING OF GAS FLARE SITES IN NIGERIA ........31 2.6.1 Legislation ...............................................................................................................31 2.6.2 Monitoring ...............................................................................................................32 2.6.3 Enforcement.............................................................................................................33 2.7 ADVERSE IMPACT OF GAS