Volume 8, Issue 6, November 2020, Page: 143-150
Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria
Kenneth Nduka, Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Ubanozie Julian Obibuike, Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Mathew Udechukwu, Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Chioma Deborah Mbakaogu, Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Anthony Chemazu Igbojionu, Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Stanley Toochukwu Ekwueme, Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Received: Sep. 21, 2020;       Accepted: Oct. 6, 2020;       Published: Nov. 16, 2020
DOI: 10.11648/j.ogce.20200806.14      View  23      Downloads  7
Abstract
The emergence of gas projects have increased the demand for natural gas. Producers of natural gas are faced with the challenge of gas distribution to users. At this point, in order to maintain demand and supply, a model is required to determine optimum distribution of gas. In this paper, models are developed for optimum gas distribution and utilisation in Nigeria. The models seek to evaluate the monetary returns accruable from the utilisation of gas resources produced in Nigeria for domestic uses. Many outlets were suggested for domestic utilisation of gas produced in Nigeria. These gas utilisation and monetization outlets were proved to have viability and competitive advantage when compared with the sales of the gas abroad. The domestic gas supply revenue formula was formulated by considering the quantity of gas each gas producer will produce, the demand of the gas locally, the price stipulated for the gas in order to ensure profitability when sold locally, the penalty price for companies willing to flare and not supply their gas, the gas deficiency price etc. The revenue formula helps the government and gas producers to determine the extent of financial returns accruable from the sale of gas for domestic utilisation. The Model is sufficient to help the government make necessary decisions and plans as regarding domestic gas aggregation in Nigeria.
Keywords
Revenue, Gas Utilisation, Gas Distribution, Model
To cite this article
Kenneth Nduka, Ubanozie Julian Obibuike, Mathew Udechukwu, Chioma Deborah Mbakaogu, Anthony Chemazu Igbojionu, Stanley Toochukwu Ekwueme, Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria, International Journal of Oil, Gas and Coal Engineering. Vol. 8, No. 6, 2020, pp. 143-150. doi: 10.11648/j.ogce.20200806.14
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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