GAS MONETISATION FROM FLARE REDUCTION ACROSS 79 OIL BLOCKS IN NIGERIA: ECONOMIC INSIGHTS FROM ALTERNATIVE PATHWAYS

Gas flaring remains one of the most persistent environmental and economic challenges in Nigeria's petroleum sector, undermining both climate goals and national energy security.This study assesses the economic viability of gas monetisation from flare reduction across 79 oil blocks, spanning Oil Mining Leases (OMLs) and Oil Prospecting Licenses (OPLs).Leveraging empirical flare volume data from the Nigerian Gas Flare Tracker, developed by NOSDRA in collaboration with the World Bank's Global Gas Flaring Reduction Partnership (GGFR) and international satellite-data partners, we modelled alternative monetisation pathways under partial and Zero Routine Flaring (ZRF) scenarios.The findings show that ZRF delivers the strongest economic returns, with high-potential fields such as OML 70 (USD 7.16 million/month) and OML 67 (USD 5.63 million/month) demonstrating substantial revenue capacity.Conversely, lower-yield blocks like OML 16 (USD 113,000/month) offer limited justification for large-scale investment, yet remain attractive for decentralised solutions such as mini-LNG, compressed natural gas (CNG), or embedded power generation to serve local communities.The study concludes that prioritising high-value flare sites while adopting flexible, small-scale strategies for marginal blocks provides a balanced and practical pathway for Nigeria's energy transition.These insights reinforce the country's policy commitments under the Paris Agreement, the World Bank's 2030 Zero Routine Flaring initiative, and the Sustainable Development Goals (SDGs), showing that environmental stewardship and economic optimisation can advance hand in hand. Highlights: Empirical analysis of gas monetisation across 79 Nigerian oil blocks using flare tracker data. Zero Routine Flaring (ZRF) scenarios deliver the highest monthly revenues, with OML 70 ($7.16M)and OML 67 ($5.63M) identified as priority sites. Site-specific disparities show marginal returns in low-yield fields (e.g., OML 16: $113K), underscoring the need for differentiated strategies.