Project Abstract

Project Overview

INTRODUCTION
1.1 Background of Study
The role of energy in economic development cannot be over emphasized.
The nature and extent of energy demand and utilization in a national economy
are to a large extent, indicative of its level of economic development. With these,
there is no gain saying the fact that energy is required in its various forms for
every aspect of our social, economic and political lives. The application of
modern technology, to ease the modern living and modern ways of life would
other wise be impossible without the use of an energy source in one form or the
other.
A case study of natural gas a source of energy is being use to determine
the rate of economic development in Nigeria because of its abundance reserves,
tremendous potential, environmental friendly and its industrial and global market
demand. This becomes even more glaring when it is remembered that all modern
production activities, transportation, telecommunication etc. depend on this
energy resources for the realization of their full potentials. The role of Electricity in
the economy cannot be overstated because reliable electricity supply is vital to
the Nigerian economy and also to the various sectors driving that growth. Natural
gas then would be appreciated as it contributes the highest quota to these energy
sources.
1.2 Typical applications f natural gas
There are so many different applications for this fossil fuel called natural
gas that it is hard to provide an exhaustive list of everything it is used for. And no
doubt new uses are being discovered all the time, these includes
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i Residential Applications – These includes Residential heating, Water heating,
Cooking
Commercial uses
– Uses in industries
– Natural gas in the transportation sector
– Electric Generator using natural gas
1.3 What are the potential contribution of natural gas
– it facilitates the growth of industries.
1.4 Statement of Problem
The ultimate recoverable gas reserves in Nigeria is 235 trillion cubic feet, but
the proven gas reserve in Nigeria is 187 trillion cubic feet of which 209 billion
cubic feet is produced annually. Out of this figure produced annually 44.82%
are presently fared. This level of gas still flared is capable of generating 69GW
of electricity and translating to lost in economic value of $5 billion dollars
annually.
Statement on domestic use of natural gas.
Natural gas could be distributed through pipeline to domestic and
commercial consumers like schools, Hotels. and Hospitals. Even for small
consumers located in remote areas, natural gas could be transported and
supplied in bottles. This not only holds for heating, but for other users of
energy around the home as well.
(iii) Statement harnessing/production of natural gas
Natural gas is a vital company of the World’s supply of energy. It is one of
the cleanest, safest, and cheapest and the most useful of all energy
sources.
(iv) Statement on natural gas a major foreign-exchange earner
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Nigerian economy is now headily dependent n gas in both domestic and
export market and thereby generating as much revenue (as oil) within the
decade.
1.5 Justification for the current work
– Look critically at the problems associated with natural gas
exploration/production in Nigeria/faring.
– The huge investment requirement are considerable high, ranging from
exploitation, transmission and distribution.
– The high percentage of gas still being flared is so high that it can generate
the electric power requirement for the whole West African Countries
(Natural Energy policy publication)
– The absence of a comprehensive natural gas transportation grid t link
supply pints with potential demand center.
– The social, community and environment issues have create a potential
open-ended liability for effective gas production and private participation.
– look at the problems associated with the domestic natural gas utilization in
Nigeria.
– A major problem exist with natural gas utilization due to the inability of the
gas Companies to produce the gas requirement to satisfy the domestic
market and the non existence of a comprehensive gas pipeline network to
link the commodity to the consumers.
– The present gas production level channeled for domestic use is grossly
inadequate 80 billon cubic feet per annum, which is not adequate for the power
sector alone. Hence, the existing gas flow station requires expansion and if possible
building more flow station to meet the ever increasing demand for gas. Linking to
West African Countries, Algeria, Tunisia and plans are under way to extend it
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incorporate a legal and regulatory framework that is attractive to private investor,
beneficial to Nigerians, and stimulate natural gas expansion programme.
(vii) Government should provide a comprehensive frame work to tackle the problem of
Youth restiveness in the Delta Region to encourage effective exploration and
exploration of gas.
(vii) Government should look into the integrate problems in some extension
infrastructure hampering direct extension or spurring of pipeline example Oben-
Ajaokuta line.
(V) No deliberate effort to exploit for gas in Nigeria to date –gas found are incidental to
oil exploration activities.
(x) Most of the existing gas facilities in the country are mostly own by the Nigeria gas
company which is empowered by the government.
1.6 How Export potential enhances market facilities.
Natural gas export by volume currently 4 billion standard cubic feet and plans have been
concluded to increase the volume to 3trillion standard cubic feet due to export demand.
These will necessitate building more flow station, terminals construction of new pipeline
network linking to other West Africa Countries (which is at 80% completion stage)
Algeria, Tunisia and plans are underway to extend so to key European Countries through
sub sea pipe network laying from Algeria to satisfy the increasing market demand for the
commodity.
1.7 Recommendation.
(i) Natural gas is a vital component of world’s supply of energy; it is one of the
cleanest, safest, cheapest and most useful of all energy sources.
(ii) At current production and utilization level, Nigerian gas resources could last more
than 100years, thereby out living that of oil which is 40 years.
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(iii) To attract private sector instrument in gas projects through the creation of enabling
environment as is currently pursued by the present administration.
(iv) Government should provide incentives and access to long term credit facilities to
finance gas projects.
(v) Putting in place a national gas transportation grid to link supply points with
potential demand centre.