ECONOMIC FRAMEWORK FOR GAS PIPELINE DEVELOPMENT IN NIGERIA

  • Henry Biose Emerald Energy Institute for Petroleum and Energy Economics, Policy and Strategic Studies, University of Port Harcourt, Nigeria
  • Professor Adewale Dosunmu Department of Petroleum and Natural Gas Engineering, University of Port Harcourt, Nigeria
  • Dr. Chijioke Nwaozuzu Emerald Energy Institute for Petroleum and Energy Economics, Policy and Strategic Studies, University of Port Harcourt, Nigeria
Keywords: Natural Gaspipeline, Economic Model, Economic Framework, Sustainable Economic Developmen

Abstract

The paper present an economic model and framework for the development of natural gas pipeline for sustainable economic development in Nigeria. The study reviewed the economics of natural gas pipeline development in Nigeria. The research formulated an economic model for a case study of Calabar to Ajaokuta 417km gas pipeline project and a discounted cash flow for an economic life of 40 years. The project economics indicates a Net Present Value (NPV) of 12.5 billion USD with a discounted payback period of 7 years and 9 nine months, Profitability Index (PI) of 7.30, Internal Rate of Return of 23.05% and Growth Rate of Return 26.97% and these project economic indicator shows that the gas pipeline investment is viable. This study provides an economic model that would guarantee security of gas supply, provide access to clean energy and provides an economic framework to support long term natural gas pipeline development in Nigeria

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Published
2019-12-31
How to Cite
Biose, H., Dosunmu, A., & Nwaozuzu, C. (2019). ECONOMIC FRAMEWORK FOR GAS PIPELINE DEVELOPMENT IN NIGERIA . International Journal of Engineering Technologies and Management Research, 6(12), 46-63. https://doi.org/10.29121/ijetmr.v6.i12.2019.474