Plagued by issues of insecurity, unstable demand, high initial development cost, bureaucratic bottlenecks and challenging terrains, the construction ofnew Gas transmission Pipelines has suffered a lot of setbacks leading to stalling of projects and in some cases abandonment by stakeholders. Based on the above premise, a study on Virtual Pipeline technology was carried simulating the fiscal and operating system in Nigeria. This study explores the use of a new technology for Gas transportation from source points to demand points especially where distance and demand do not justify an investment in a gas pipeline. Virtual Pipeline is a system that allows for natural gas transportation in the form of compressed/liquefied gas using modules coupled to mobile platforms, which are transported by trucks, ferry boats, boats and/or rail platforms. In order to find the most economically viable means of exploiting a stranded gas reservoir and with a vision to eliminate Gas flaring, an excel-based economic model was built and used to Compare Pipeline transportation against Virtual pipeline transport. Also included in this study, is a step by step review of all processes that make up the virtual pipeline technology. Results from the economic analysis showed that for transporting gas to demand points less than 20miles, CNG proved to be better than conventional pipeline transportation. Factors affecting the profitability ofa gas transportation project were also identified in the model. A sensitivity analysis was carried out using @Risk™ Software, in order to quantify the effect of these variables on the choice of the optimum Gas transportation type.
|Title of host publication||SPE Nigeria Annual International Conference and Exhibition|
|Number of pages||15|
|Publication status||Published - 2 Aug 2016|
|Event||SPE Nigeria 2016 Annual International Conference and Exhibition - Lagos, Nigeria|
Duration: 2 Aug 2016 → 4 Aug 2016
|Conference||SPE Nigeria 2016 Annual International Conference and Exhibition|
|Period||2/08/16 → 4/08/16|