Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria

Kenneth Nduka; Ubanozie Julian Obibuike; Mathew Udechukwu; Chioma Deborah Mbakaogu; Anthony Chemazu Igbojionu; Stanley Toochukwu Ekwueme

doi:doi:10.11648/j.ogce.20200806.14

Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria

Kenneth Nduka, Ubanozie Julian Obibuike, Mathew Udechukwu, Chioma Deborah Mbakaogu, Anthony Chemazu Igbojionu, Stanley Toochukwu Ekwueme

Published in International Journal of Oil, Gas and Coal Engineering (Volume 8, Issue 6)

Received: 21 September 2020 Accepted: 6 October 2020 Published: 16 November 2020

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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.

Published in	International Journal of Oil, Gas and Coal Engineering (Volume 8, Issue 6)
DOI	10.11648/j.ogce.20200806.14
Page(s)	143-150
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Revenue, Gas Utilisation, Gas Distribution, Model

References

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[2]	Franklin, U. (2013). Maximizing Africa's Gas Resources. Presented at the PWC Africa Oil and Gas Leadership Conference, Lagos, Nigeria.
[3]	Ogwo A. E, PetroGas Ltd, (2010), “Instruments for the Implementation of Domestic Gas Supply Obligation” A paper presented at Gas Stakeholders Forum in Lagos, 24th February.
[4]	Okotie, S. and Ikporo, B. 2014. Utilization of Nigerian Precious Resource in the Niger Delta Region for the Benefit of the Ecosystem. International Journal of Engineering and Technology 4 (8): 488—498.
[5]	Emejulu, O, FUTO Consult Nigeria Ltd, (2009), “Development of Gas Aggregation and Allocation Models in the Domestic Sector of the Economy” A paper presented at Gas Stakeholders Forum in Abuja, 23th March.
[6]	Okparaojiaku, O. C, DPR Nigeria (2008), “Domestic Gas Supply Obligation Status” A paper presented at Gas Stakeholders Forum in Lagos, 6th May.
[7]	Ogwo, U. J. O, DPR Nigeria, (2008), “A Survey of Existing Gas Prices and Tariff Models in Nigeria” A paper presented at Gas Stakeholders Forum in Abuja, 26th November.
[8]	Ehirim O. Emmanuel, Falola Ajibola Yusuf & Ngutsav Sesugh Caleb (2018). Towards Effective Domestic Natural Gas Utilization in Nigeria. International Journal of Engineering and Modern Technology ISSN 2504-8856 Vol. 4 No. 3 2018.
[9]	Ogwo, U. J. O, DPR Nigeria, (2007), “Equivalent Gas Pricing Model” SPE 111897, presented at 31st Nigerian Annual International Conference and Exhibition held in Abuja, Nigeria, 6rd – 8th August.
[10]	David, O. I. (2008). The Nigerian Master Gas Plan- Investor Road Show. Nigerian National Petroleum Company (NNPC).
[11]	Okerie, G. A, (2009), “Economic Sustainability of Gas for domestic growth” publication on Oil and Gas Journal (OGJ), 16th February.
[12]	Adegoke, A. A. (2006), “Integrated GTL Power-Generation Technology: The Optimal Solution to Natural Gas Exploitation in Nigeria’’ SPE 105966, presented at 30th Nigerian Annual International Conference and Exhibition held in Abuja, Nigeria, 3rd – 4th August.
[13]	Kehinde, A. (2016). Strategy for the Development of the Petrochemical Industry in Nigeria. Lagos, Nigeria.
[14]	Akpan, S. E. (2009). Production and Utilization of Natural Gas Resources in Nigeria. Presented at + the NAICE, Abuja, Nigeria, 3—5 August. SPE-128356.
[15]	Texas Comptroller of Public Accounts (TCPA), Q. 2008. Liquefied Petroleum Gas (LPG). The Energy Report.

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APA Style

Kenneth Nduka, Ubanozie Julian Obibuike, Mathew Udechukwu, Chioma Deborah Mbakaogu, Anthony Chemazu Igbojionu, et al. (2020). Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria. International Journal of Oil, Gas and Coal Engineering, 8(6), 143-150. https://doi.org/10.11648/j.ogce.20200806.14

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ACS Style

Kenneth Nduka; Ubanozie Julian Obibuike; Mathew Udechukwu; Chioma Deborah Mbakaogu; Anthony Chemazu Igbojionu, et al. Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria. Int. J. Oil Gas Coal Eng. 2020, 8(6), 143-150. doi: 10.11648/j.ogce.20200806.14

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AMA Style

Kenneth Nduka, Ubanozie Julian Obibuike, Mathew Udechukwu, Chioma Deborah Mbakaogu, Anthony Chemazu Igbojionu, et al. Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria. Int J Oil Gas Coal Eng. 2020;8(6):143-150. doi: 10.11648/j.ogce.20200806.14

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@article{10.11648/j.ogce.20200806.14,
  author = {Kenneth Nduka and Ubanozie Julian Obibuike and Mathew Udechukwu and Chioma Deborah Mbakaogu and Anthony Chemazu Igbojionu and Stanley Toochukwu Ekwueme},
  title = {Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria},
  journal = {International Journal of Oil, Gas and Coal Engineering},
  volume = {8},
  number = {6},
  pages = {143-150},
  doi = {10.11648/j.ogce.20200806.14},
  url = {https://doi.org/10.11648/j.ogce.20200806.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ogce.20200806.14},
  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.},
 year = {2020}
}

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TY  - JOUR
T1  - Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria
AU  - Kenneth Nduka
AU  - Ubanozie Julian Obibuike
AU  - Mathew Udechukwu
AU  - Chioma Deborah Mbakaogu
AU  - Anthony Chemazu Igbojionu
AU  - Stanley Toochukwu Ekwueme
Y1  - 2020/11/16
PY  - 2020
N1  - https://doi.org/10.11648/j.ogce.20200806.14
DO  - 10.11648/j.ogce.20200806.14
T2  - International Journal of Oil, Gas and Coal Engineering
JF  - International Journal of Oil, Gas and Coal Engineering
JO  - International Journal of Oil, Gas and Coal Engineering
SP  - 143
EP  - 150
PB  - Science Publishing Group
SN  - 2376-7677
UR  - https://doi.org/10.11648/j.ogce.20200806.14
AB  - 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.
VL  - 8
IS  - 6
ER  -

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Author Information

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

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APA Style

Kenneth Nduka, Ubanozie Julian Obibuike, Mathew Udechukwu, Chioma Deborah Mbakaogu, Anthony Chemazu Igbojionu, et al. (2020). Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria. International Journal of Oil, Gas and Coal Engineering, 8(6), 143-150. https://doi.org/10.11648/j.ogce.20200806.14

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ACS Style

Kenneth Nduka; Ubanozie Julian Obibuike; Mathew Udechukwu; Chioma Deborah Mbakaogu; Anthony Chemazu Igbojionu, et al. Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria. Int. J. Oil Gas Coal Eng. 2020, 8(6), 143-150. doi: 10.11648/j.ogce.20200806.14

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AMA Style

Kenneth Nduka, Ubanozie Julian Obibuike, Mathew Udechukwu, Chioma Deborah Mbakaogu, Anthony Chemazu Igbojionu, et al. Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria. Int J Oil Gas Coal Eng. 2020;8(6):143-150. doi: 10.11648/j.ogce.20200806.14

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@article{10.11648/j.ogce.20200806.14,
  author = {Kenneth Nduka and Ubanozie Julian Obibuike and Mathew Udechukwu and Chioma Deborah Mbakaogu and Anthony Chemazu Igbojionu and Stanley Toochukwu Ekwueme},
  title = {Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria},
  journal = {International Journal of Oil, Gas and Coal Engineering},
  volume = {8},
  number = {6},
  pages = {143-150},
  doi = {10.11648/j.ogce.20200806.14},
  url = {https://doi.org/10.11648/j.ogce.20200806.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ogce.20200806.14},
  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.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Development of Revenue Model for Optimum Gas Distribution and Utilisation in Nigeria
AU  - Kenneth Nduka
AU  - Ubanozie Julian Obibuike
AU  - Mathew Udechukwu
AU  - Chioma Deborah Mbakaogu
AU  - Anthony Chemazu Igbojionu
AU  - Stanley Toochukwu Ekwueme
Y1  - 2020/11/16
PY  - 2020
N1  - https://doi.org/10.11648/j.ogce.20200806.14
DO  - 10.11648/j.ogce.20200806.14
T2  - International Journal of Oil, Gas and Coal Engineering
JF  - International Journal of Oil, Gas and Coal Engineering
JO  - International Journal of Oil, Gas and Coal Engineering
SP  - 143
EP  - 150
PB  - Science Publishing Group
SN  - 2376-7677
UR  - https://doi.org/10.11648/j.ogce.20200806.14
AB  - 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.
VL  - 8
IS  - 6
ER  -

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