Natural gas which is a subcategory of petroleum is a naturally occurring, complex mixture of hydrocarbons with minor amounts of inorganic compounds. Nigeria has a proven gas reserve estimated to be 206.53 Tscf, which is worth over 803.4 trillion dollars as of April 2022. These volumes of gases could be utilized in different ways, and the strategies employed in their utilization can be optimized to yield maximum benefit. The purpose of this study is to critically analyze the strategies employed in natural gas utilization within the Niger Delta region of Nigeria, then use an optimization technique and software to determine the optimum decision strategy. The study was limited to the use of linear optimization software, LINGO. A linear transshipment model was developed based on the gas utilization options that are employed in the Niger Delta. The transshipment model consists of three nodes: source, process, and destination nodes, which represent centers of activity. An objective function enveloping all the optimization nodes considered is defined. A set of constraints was also defined to restrict the model based on some factors such as the gas composition limit, the maximum deliverability at the destination nodes, etc. The necessary data for the study include gas composition data, fixed cost data, variable cost data, and market price data. The solution to the model provided by the software shows that the optimum net income for a period of 20 years is $2.522 trillion. The volume of gas that is required to meet market demand for the gas utilization options denoted G is 41.13264 Tscf. The result also shows that all the utilization options considered in the study are profitable since they all contributed to the optimum value obtained. A sensitivity analysis was carried out to see the effect a 10 to 50% increase or decrease in the fixed cost, variable cost, and market price data will have on the optimum value obtained.
| Published in | International Journal of Oil, Gas and Coal Engineering (Volume 12, Issue 1) |
| DOI | 10.11648/j.ogce.20241201.13 |
| Page(s) | 20-30 |
| 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 |
Gas, Optimization, Model, Utilization, Node, Transshipment, Linear Programming, Sensitivity Analysis
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APA Style
Uwaezuoke, N., Tochi, A., Duru, U. (2024). Optimizing Strategies Employed in Natural Gas Utilization. International Journal of Oil, Gas and Coal Engineering, 12(1), 20-30. https://doi.org/10.11648/j.ogce.20241201.13
ACS Style
Uwaezuoke, N.; Tochi, A.; Duru, U. Optimizing Strategies Employed in Natural Gas Utilization. Int. J. Oil Gas Coal Eng. 2024, 12(1), 20-30. doi: 10.11648/j.ogce.20241201.13
AMA Style
Uwaezuoke N, Tochi A, Duru U. Optimizing Strategies Employed in Natural Gas Utilization. Int J Oil Gas Coal Eng. 2024;12(1):20-30. doi: 10.11648/j.ogce.20241201.13
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Download@article{10.11648/j.ogce.20241201.13,
author = {Nnaemeka Uwaezuoke and Anene Tochi and Ugochukwu Duru},
title = {Optimizing Strategies Employed in Natural Gas Utilization},
journal = {International Journal of Oil, Gas and Coal Engineering},
volume = {12},
number = {1},
pages = {20-30},
doi = {10.11648/j.ogce.20241201.13},
url = {https://doi.org/10.11648/j.ogce.20241201.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ogce.20241201.13},
abstract = {Natural gas which is a subcategory of petroleum is a naturally occurring, complex mixture of hydrocarbons with minor amounts of inorganic compounds. Nigeria has a proven gas reserve estimated to be 206.53 Tscf, which is worth over 803.4 trillion dollars as of April 2022. These volumes of gases could be utilized in different ways, and the strategies employed in their utilization can be optimized to yield maximum benefit. The purpose of this study is to critically analyze the strategies employed in natural gas utilization within the Niger Delta region of Nigeria, then use an optimization technique and software to determine the optimum decision strategy. The study was limited to the use of linear optimization software, LINGO. A linear transshipment model was developed based on the gas utilization options that are employed in the Niger Delta. The transshipment model consists of three nodes: source, process, and destination nodes, which represent centers of activity. An objective function enveloping all the optimization nodes considered is defined. A set of constraints was also defined to restrict the model based on some factors such as the gas composition limit, the maximum deliverability at the destination nodes, etc. The necessary data for the study include gas composition data, fixed cost data, variable cost data, and market price data. The solution to the model provided by the software shows that the optimum net income for a period of 20 years is $2.522 trillion. The volume of gas that is required to meet market demand for the gas utilization options denoted G is 41.13264 Tscf. The result also shows that all the utilization options considered in the study are profitable since they all contributed to the optimum value obtained. A sensitivity analysis was carried out to see the effect a 10 to 50% increase or decrease in the fixed cost, variable cost, and market price data will have on the optimum value obtained.
},
year = {2024}
}
TY - JOUR T1 - Optimizing Strategies Employed in Natural Gas Utilization AU - Nnaemeka Uwaezuoke AU - Anene Tochi AU - Ugochukwu Duru Y1 - 2024/01/23 PY - 2024 N1 - https://doi.org/10.11648/j.ogce.20241201.13 DO - 10.11648/j.ogce.20241201.13 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 - 20 EP - 30 PB - Science Publishing Group SN - 2376-7677 UR - https://doi.org/10.11648/j.ogce.20241201.13 AB - Natural gas which is a subcategory of petroleum is a naturally occurring, complex mixture of hydrocarbons with minor amounts of inorganic compounds. Nigeria has a proven gas reserve estimated to be 206.53 Tscf, which is worth over 803.4 trillion dollars as of April 2022. These volumes of gases could be utilized in different ways, and the strategies employed in their utilization can be optimized to yield maximum benefit. The purpose of this study is to critically analyze the strategies employed in natural gas utilization within the Niger Delta region of Nigeria, then use an optimization technique and software to determine the optimum decision strategy. The study was limited to the use of linear optimization software, LINGO. A linear transshipment model was developed based on the gas utilization options that are employed in the Niger Delta. The transshipment model consists of three nodes: source, process, and destination nodes, which represent centers of activity. An objective function enveloping all the optimization nodes considered is defined. A set of constraints was also defined to restrict the model based on some factors such as the gas composition limit, the maximum deliverability at the destination nodes, etc. The necessary data for the study include gas composition data, fixed cost data, variable cost data, and market price data. The solution to the model provided by the software shows that the optimum net income for a period of 20 years is $2.522 trillion. The volume of gas that is required to meet market demand for the gas utilization options denoted G is 41.13264 Tscf. The result also shows that all the utilization options considered in the study are profitable since they all contributed to the optimum value obtained. A sensitivity analysis was carried out to see the effect a 10 to 50% increase or decrease in the fixed cost, variable cost, and market price data will have on the optimum value obtained. VL - 12 IS - 1 ER -
Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
Department of Petroleum Engineering, Federal University of Technology, Owerri, Nigeria
