TY - JOUR AU - Nwabueze, Gift AU - Ogbonna, Joel AU - Nwaozuzu, Chijioke PY - 2020/09/25 Y2 - 2024/03/28 TI - COST – BENEFIT ANALYSIS FOR NIGERIAN NATURAL GAS PIPELINE INVESTMENT JF - International Journal of Engineering Technologies and Management Research JA - Int. J. Eng. Tech. Mgmt. Res. VL - 7 IS - 9 SE - Articles DO - 10.29121/ijetmr.v7.i9.2020.780 UR - https://www.granthaalayahpublication.org/ijetmr-ojms/ijetmr/article/view/IJETMR20_A08_2190 SP - 52-65 AB - <p>This paper performs cost-benefit analysis of a pipeline infrastructure project based on a given natural gas demand in order to estimate the net present value and payback time for natural gas pipeline investment in Nigeria. The result of the cost-benefit analysis indicates a positive net revenue and net present value (NPV) at the current regulated transport cost and availability factor for gas pipelines in Nigeria. However, with a payback period of 14 years, a natural gas pipeline project in Nigeria is likely to lose-out investment capital to other competing investments within the oil and gas sector. Scenario analysis indicates that by doubling the regulated transport cost with a 50% tax reduction, the pipeline investment results in a much higher NPV and a payback of 4 years, which is more acceptable to investors.</p> ER -