Development of Domestic Gas Supply Obligation Model for Efficient Gas Utilisation in Nigeria

Kenneth Nduka; Charley Iyke Anyadiegwu; Ugochukwu Ilozuruike Duru; Ubanozie Julian Obibuike; Stanley Toochukwu Ekwueme

doi:doi:10.11648/j.ogce.20200802.11

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Development of Domestic Gas Supply Obligation Model for Efficient Gas Utilisation in Nigeria

Kenneth Nduka, Charley Iyke Anyadiegwu, Ugochukwu Ilozuruike Duru, Ubanozie Julian Obibuike, Stanley Toochukwu Ekwueme

Published in International Journal of Oil, Gas and Coal Engineering (Volume 8, Issue 2)

Received: 9 February 2020 Accepted: 19 February 2020 Published: 2 March 2020

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Abstract

In the past government preferred to sell natural gas to international users rather than keep it for local utilisation. The possible explanation to this is that more revenue is accruable from the sale of the natural gas internationally than locally, and market instabilities further limits the choice of local supply of natural gas. This reason has led to scarcity of natural gas for local consumption leading to limited industrial progress because most industries utilise natural gas. To curb the situation, a method must be developed for proper allocation of natural gas domestically such that gas availability and assurance of local market is guaranteed. In this paper, a domestic gas supply obligation model is developed. The model was developed by determining mathematical equations relating the gas reserve, gas utilised, gas flared and gas demanded of a company. The model seeks to enhance optimum gas supply for allocation to the strategic sectors of the economy. The model is useful in mopping up gas from the gas producing multinationals and indigenous companies and redistributing it to the strategic users. The model works out the quota of gas quantities that primary producers should mandatorily supply to the national reserve. The work developed a monitory system that will persuade gas producers for compliance to the domestic gas supply obligation. The paper encouraged gas flare down management by ensuring that gases are adequately distributed and utilised locally. The model ensures that government do not lose out rightly by ensuring that each company supplies that quantity of gas it is obligated to.

Published in	International Journal of Oil, Gas and Coal Engineering (Volume 8, Issue 2)
DOI	10.11648/j.ogce.20200802.11
Page(s)	35-39
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), 2024. Published by Science Publishing Group

Keywords

Domestic Gas, Gas Utilisation, Supply Obligation, Obligatory Ratio, Model Development

References

[1]	Global Gas flaring Reduction Partnership (2018). GGFR Technology Overview – Utilization of Small-Scale Associated Gas.
[2]	Nigeria Gas Flare Commercialization Programme (NGFCP). (2018). Request for Qualification. Nigeria: Ministry of Petroleum and natural resources, Nigeria.
[3]	Imoudu P. B. and Igbatayo, S. A. (2006), “Developing Nigeria’s Gas Industry for Regional Economic Integration: The West African Gas Pipeline Project” SPE 105967, presented at 30th Nigerian Annual International Conference and Exhibition held in Abuja, Nigeria, 3rd – 4th August.
[4]	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.
[5]	Malcolm, B. (2004), “The vital role of gas in a sustainable energy future”, paper presented at CERA conference, Houston. 11th February, 2004.
[6]	Neeka, B. J, MPR Nigeria, (2010), “Gas Aggregation and Allocation in the Domestic Sector of the Economy” A paper presented at Gas Stakeholders Forum in Abuja, 15th February.
[7]	Morgan L. and Chinwo, C. N. (2006), “Sustainable Gas Utilisation and the Clean Development Mechanism: The Nigerian Perspective” SPE 105968, presented at 30th Nigerian Annual International Conference and Exhibition held in Abuja, Nigeria, 3rd – 4th August.
[8]	Kupolokun, F. (2005), Growth Projection for Nigeria’s gas sector. An article published in the Nigerian Guardian, 9th may, Lagos.
[9]	Okerie, G. A, (2009), “Economic Sustainability of Gas for domestic growth” publication on Oil and Gas Journal (OGJ).
[10]	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.
[11]	Okparaojiaku, O. C, DPR Nigeria (2008), “Domestic Gas Supply Obligation Status” A paper presented at Gas Stakeholders Forum in Lagos, 6th May.
[12]	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.
[13]	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.
[14]	Kazeem L. A., Amam, S. and Yang, J. (2006), “Between Gas Flare-out and Sustainable Oil and Gas TS2” Gas Utilization “SPE 105963, presented at 30th Nigerian Annual International Conference and Exhibition held in Abuja, Nigeria, 3rd – 4th August.

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APA Style

Kenneth Nduka, Charley Iyke Anyadiegwu, Ugochukwu Ilozuruike Duru, Ubanozie Julian Obibuike, Stanley Toochukwu Ekwueme. (2020). Development of Domestic Gas Supply Obligation Model for Efficient Gas Utilisation in Nigeria. International Journal of Oil, Gas and Coal Engineering, 8(2), 35-39. https://doi.org/10.11648/j.ogce.20200802.11

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ACS Style

Kenneth Nduka; Charley Iyke Anyadiegwu; Ugochukwu Ilozuruike Duru; Ubanozie Julian Obibuike; Stanley Toochukwu Ekwueme. Development of Domestic Gas Supply Obligation Model for Efficient Gas Utilisation in Nigeria. Int. J. Oil Gas Coal Eng. 2020, 8(2), 35-39. doi: 10.11648/j.ogce.20200802.11

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AMA Style

Kenneth Nduka, Charley Iyke Anyadiegwu, Ugochukwu Ilozuruike Duru, Ubanozie Julian Obibuike, Stanley Toochukwu Ekwueme. Development of Domestic Gas Supply Obligation Model for Efficient Gas Utilisation in Nigeria. Int J Oil Gas Coal Eng. 2020;8(2):35-39. doi: 10.11648/j.ogce.20200802.11

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@article{10.11648/j.ogce.20200802.11,
  author = {Kenneth Nduka and Charley Iyke Anyadiegwu and Ugochukwu Ilozuruike Duru and Ubanozie Julian Obibuike and Stanley Toochukwu Ekwueme},
  title = {Development of Domestic Gas Supply Obligation Model for Efficient Gas Utilisation in Nigeria},
  journal = {International Journal of Oil, Gas and Coal Engineering},
  volume = {8},
  number = {2},
  pages = {35-39},
  doi = {10.11648/j.ogce.20200802.11},
  url = {https://doi.org/10.11648/j.ogce.20200802.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ogce.20200802.11},
  abstract = {In the past government preferred to sell natural gas to international users rather than keep it for local utilisation. The possible explanation to this is that more revenue is accruable from the sale of the natural gas internationally than locally, and market instabilities further limits the choice of local supply of natural gas. This reason has led to scarcity of natural gas for local consumption leading to limited industrial progress because most industries utilise natural gas. To curb the situation, a method must be developed for proper allocation of natural gas domestically such that gas availability and assurance of local market is guaranteed. In this paper, a domestic gas supply obligation model is developed. The model was developed by determining mathematical equations relating the gas reserve, gas utilised, gas flared and gas demanded of a company. The model seeks to enhance optimum gas supply for allocation to the strategic sectors of the economy. The model is useful in mopping up gas from the gas producing multinationals and indigenous companies and redistributing it to the strategic users. The model works out the quota of gas quantities that primary producers should mandatorily supply to the national reserve. The work developed a monitory system that will persuade gas producers for compliance to the domestic gas supply obligation. The paper encouraged gas flare down management by ensuring that gases are adequately distributed and utilised locally. The model ensures that government do not lose out rightly by ensuring that each company supplies that quantity of gas it is obligated to.},
 year = {2020}
}

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TY - JOUR
T1 - Development of Domestic Gas Supply Obligation Model for Efficient Gas Utilisation in Nigeria
AU - Kenneth Nduka
AU - Charley Iyke Anyadiegwu
AU - Ugochukwu Ilozuruike Duru
AU - Ubanozie Julian Obibuike
AU - Stanley Toochukwu Ekwueme
Y1 - 2020/03/02
PY - 2020
N1 - https://doi.org/10.11648/j.ogce.20200802.11
DO - 10.11648/j.ogce.20200802.11
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 - 35
EP - 39
PB - Science Publishing Group
SN - 2376-7677
UR - https://doi.org/10.11648/j.ogce.20200802.11
AB - In the past government preferred to sell natural gas to international users rather than keep it for local utilisation. The possible explanation to this is that more revenue is accruable from the sale of the natural gas internationally than locally, and market instabilities further limits the choice of local supply of natural gas. This reason has led to scarcity of natural gas for local consumption leading to limited industrial progress because most industries utilise natural gas. To curb the situation, a method must be developed for proper allocation of natural gas domestically such that gas availability and assurance of local market is guaranteed. In this paper, a domestic gas supply obligation model is developed. The model was developed by determining mathematical equations relating the gas reserve, gas utilised, gas flared and gas demanded of a company. The model seeks to enhance optimum gas supply for allocation to the strategic sectors of the economy. The model is useful in mopping up gas from the gas producing multinationals and indigenous companies and redistributing it to the strategic users. The model works out the quota of gas quantities that primary producers should mandatorily supply to the national reserve. The work developed a monitory system that will persuade gas producers for compliance to the domestic gas supply obligation. The paper encouraged gas flare down management by ensuring that gases are adequately distributed and utilised locally. The model ensures that government do not lose out rightly by ensuring that each company supplies that quantity of gas it is obligated to.
VL - 8
IS - 2
ER -

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Author Information

Kenneth Nduka

Department of Petroleum Engineering, Federal University of Technology, Owerri (FUTO), Nigeria
Charley Iyke Anyadiegwu

Department of Petroleum Engineering, Federal University of Technology, Owerri (FUTO), Nigeria
Ugochukwu Ilozuruike Duru

Department of Petroleum Engineering, Federal University of Technology, Owerri (FUTO), Nigeria
Ubanozie Julian Obibuike

Department of Petroleum Engineering, Federal University of Technology, Owerri (FUTO), Nigeria
Stanley Toochukwu Ekwueme

Department of Petroleum Engineering, Federal University of Technology, Owerri (FUTO), Nigeria

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APA Style

Kenneth Nduka, Charley Iyke Anyadiegwu, Ugochukwu Ilozuruike Duru, Ubanozie Julian Obibuike, Stanley Toochukwu Ekwueme. (2020). Development of Domestic Gas Supply Obligation Model for Efficient Gas Utilisation in Nigeria. International Journal of Oil, Gas and Coal Engineering, 8(2), 35-39. https://doi.org/10.11648/j.ogce.20200802.11

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ACS Style

Kenneth Nduka; Charley Iyke Anyadiegwu; Ugochukwu Ilozuruike Duru; Ubanozie Julian Obibuike; Stanley Toochukwu Ekwueme. Development of Domestic Gas Supply Obligation Model for Efficient Gas Utilisation in Nigeria. Int. J. Oil Gas Coal Eng. 2020, 8(2), 35-39. doi: 10.11648/j.ogce.20200802.11

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AMA Style

Kenneth Nduka, Charley Iyke Anyadiegwu, Ugochukwu Ilozuruike Duru, Ubanozie Julian Obibuike, Stanley Toochukwu Ekwueme. Development of Domestic Gas Supply Obligation Model for Efficient Gas Utilisation in Nigeria. Int J Oil Gas Coal Eng. 2020;8(2):35-39. doi: 10.11648/j.ogce.20200802.11

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@article{10.11648/j.ogce.20200802.11,
  author = {Kenneth Nduka and Charley Iyke Anyadiegwu and Ugochukwu Ilozuruike Duru and Ubanozie Julian Obibuike and Stanley Toochukwu Ekwueme},
  title = {Development of Domestic Gas Supply Obligation Model for Efficient Gas Utilisation in Nigeria},
  journal = {International Journal of Oil, Gas and Coal Engineering},
  volume = {8},
  number = {2},
  pages = {35-39},
  doi = {10.11648/j.ogce.20200802.11},
  url = {https://doi.org/10.11648/j.ogce.20200802.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ogce.20200802.11},
  abstract = {In the past government preferred to sell natural gas to international users rather than keep it for local utilisation. The possible explanation to this is that more revenue is accruable from the sale of the natural gas internationally than locally, and market instabilities further limits the choice of local supply of natural gas. This reason has led to scarcity of natural gas for local consumption leading to limited industrial progress because most industries utilise natural gas. To curb the situation, a method must be developed for proper allocation of natural gas domestically such that gas availability and assurance of local market is guaranteed. In this paper, a domestic gas supply obligation model is developed. The model was developed by determining mathematical equations relating the gas reserve, gas utilised, gas flared and gas demanded of a company. The model seeks to enhance optimum gas supply for allocation to the strategic sectors of the economy. The model is useful in mopping up gas from the gas producing multinationals and indigenous companies and redistributing it to the strategic users. The model works out the quota of gas quantities that primary producers should mandatorily supply to the national reserve. The work developed a monitory system that will persuade gas producers for compliance to the domestic gas supply obligation. The paper encouraged gas flare down management by ensuring that gases are adequately distributed and utilised locally. The model ensures that government do not lose out rightly by ensuring that each company supplies that quantity of gas it is obligated to.},
 year = {2020}
}

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