Since the initial discovery of oil within Nigeria during the 1950s, the country has grown to be the eighth largest exporter of oil in the world, and the fifth largest source of imported oil for the United States. Most of Nigeria's oil and gas reserves are located in the Niger River Delta and adjacent offshore region where significant environmental challenges exist. The development of major projects aimed at ending gas flaring (combustion of surplus gas produced in association with oil production) by 2008 has been one of the highlights of the past three years in the Nigerian energy sector.

Working in conjunction with a local Nigerian consultant and its multinational oil and gas client, Battelle helped perform an Environmental Impact Assessment (EIA) for a proposed natural gas liquids (NGL) project. The project will make beneficial commercial use of offshore gas reserves by recovering, processing, and exporting the propane and heavier NGL components of the gas stream that would otherwise be re-injected back into the underground oil reservoir.

The EIA study was conducted in conformance with Federal Ministry of Environment and Department of Petroleum Resources requirements. Baseline surveys were conducted during the dry and wet seasons at more than 80 stations, including offshore, nearshore, and onshore locations. Sampled media included sediment, soil, water, and air (including noise). Socioeconomic surveys of potentially affected communities were also undertaken.

The results of the EIA and review of existing operations provided evidence that adding the proposed NGL facility would have minimal incremental and cumulative impacts on the environment. The EIA also demonstrated that the development could be safely constructed and operated in compliance with applicable regulatory requirements. The project will result in substantial environmental and economic benefit for Nigeria including:

• recovery of high-value NGL that, in the absence of the project, would be lost;
• generation of additional revenues;
• environmental conservation through replacement of existing pollution control measures and improvements to process systems' reliability;
• provision of employment and skill acquisition opportunities for Nigerians;
• maximization of Nigerian content for new facility components;
• improved economic viability for future development of satellite fields; and
• sustainable development of economic resources for future generations.

For more information, contact Mr. Alan Tilstone at (781) 869-1407, tilstonea@battelle.org, or Dr. Bernhard Metzger at (781) 869-1409, metzgerb@battelle.org.