Ghana has lost a significant amount of natural gas due to flaring in its upstream petroleum sector. According to the 2022 Annual Public Interest Accountability Committee (PIAC) Report on Management and Use of Petroleum Revenue, a total of 25.3 billion cubic feet (bcf) worth about $169 million was lost through flaring in 2022 alone.
This volume increased by 19.3% compared to a volume of 21.2 bcf recorded in 2021. The amount lost constituted about 10% of the total 253.56 bcf produced from both Associated Gas (AG) and Non-Associated Gas (NAG) from three oil fields: Jubilee, Sankofa Gye-Nyame (SGN), and Tweneboa-Enyenra-Ntomme (TEN).
This is not a new problem for Ghana’s petroleum sector. According to a report by African Centre for Energy Policy (ACEP), between 2019 and 2021, about 47 billion cubic feet (bcf) valued at $300 million was lost to flaring. This is a significant amount that could have been used for other purposes such as power generation or exportation.
Flaring is the process whereby natural gas is burned off during oil production. It is done when there is no infrastructure to capture or transport the gas. Flaring contributes to climate change by releasing carbon dioxide into the atmosphere. It also wastes a valuable resource that could be used for other purposes.
In conclusion, Ghana’s petroleum sector has lost millions of dollars worth of natural gas due to flaring. This is not a new problem as it has been happening for years. Flaring contributes to climate change and wastes a valuable resource that could be used for other purposes such as power generation or exportation. It is important for Ghana’s government and petroleum companies to take action to reduce flaring and find alternative ways to use natural gas.