Abstract
The study reviewed the gas pipeline development in Nigeria and outlines needed strategies needed for sustainable development of gas pipeline for socio-economic development in Nigeria. There is inefficient gas pipeline development framework in Nigeria, based on the existing monopoly of the Nigerian Gas Processing and Transportation Company Limited (NGPTC) managing 1,500 to 2,000 km of gas pipeline all over Nigeria, while this is grossly inadequate to meet the domestic supply obligation. Extensive review of related literature was employed to obtain relevant data and information on the Nigerian gas pipeline. The study shows that gas pipeline is inadequate and additional 5,000km is required to meet the short and medium need, while about 10,000km gas pipeline will be needed in the long run. The study further revealed that gas is major source of revenue as N72.7 billion was generated from between 2017 and 2018. The study also reviewed the eight (8) critical gas infrastructures identified by the federal government of Nigeria, of which Obiafu-Obrikom-Oben (OB3) Pipeline Project and AjaokutaKaduna-Kano (AKK) Pipeline Project has the final investment decision taken and are at construction and detailed engineering phase respectively. The proposed strategy to enhance gas pipelines development in Nigeria should be private sector driven and divestment of all existing gas pipeline infrastructure to private investors in order to ensure sustainable management that would increase the Gross Domestic Product (GDP), create employment and provide access to relatively clean energy. There is also need to have a gas pipeline transmission and distribution act that would stipulate the minimum requirement for gas pipeline investment in Nigeria.
Highlights
There is inefficient gas pipeline development framework in Nigeria, as the existing pipelines have been solely managed by the federal government, through its agencies and parasatals, which includes : Nigerian Gas Processing and Transportation Company Limited (NGPTC), Nigeria Gas Marketing Company Limited (NGMC) and Department of Petroleum Resources (DPR) and they are in control of approximately 1,500 to 2,000 km of gas pipelines all over Nigeria, with limited or negligible private sector participation and this has
The purpose of this study is to review the gas pipeline infrastructure development in Nigeria and to outline necessary strategies needed for sustainable development of gas pipeline for socioeconomic development in Nigeria
Gas pipelines have been developed by the Nigerian National Petroleum Corporation (NNPC) through its strategic business unit; Nigerian Gas Transportation and Processing Company (NGTPC), formally Nigerian Gas Company (NGC), with varying economic models and frameworks, while the regulations of the gas pipeline is by Department of Petroleum Resource (DPR)
Summary
While figure 1.1 shows the western and eastern region gas pipeline network indicating the inadequacy of the existing gas pipeline network, though as the region with relatively more gas pipeline network and this is still inadequate to meet the demand or domestic supply obligation as there no gas distribution network within any major city or town in this region of Nigeria. The existing economics and commercial framework for the Ajaokuta-Kaduna-Kano (AKK), 614Km gas pipeline that is being developed by the Nigerian National Petroleum Corporation (NNPC) and financed by the Chinese partners, has not created any economic framework and benefit such as massive employment for young and experience engineers, technologist and artisans from Nigeria due to poor gas pipeline economics and planning
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