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natural gas as an alternative for automobile fuel in nigeria, the challenges and the future prospect

In an attempt to address major causes of pollution from gas flaring and transportation, the Nigerian government introduced the use of natural gas (or compressed natural gas) as an alternative fuel for automobiles in 1997. However, progress has been very slow as the government has concentrated more on LNG (liquefied natural gas) exportation, LPG (liquefied petroleum gas), and gas to power projects. These projects have aided in reducing gas flaring, but pollution from transportation is still increasing

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ABSTRACT

In an attempt to address major causes of pollution from gas flaring and transportation, the Nigerian government introduced the use of natural gas (or compressed natural gas) as an alternative fuel for automobiles in 1997. However, progress has been very slow as the government has concentrated more on LNG (liquefied natural gas) exportation, LPG (liquefied petroleum gas), and gas to power projects. These projects have aided in reducing gas flaring, but pollution from transportation is still increasing. This work studies the use of natural gas as an alternative fuel for automobiles in Nigeria. The use of CNG as an alternative fuel for automobiles in Nigeria has benefits ranging from reduction in pollution to an increase in productivity, efficiency, safety, and energy security. Thus, to encourage the use of natural gas as automobile fuel in Nigeria, the government needs to develop a targeted carbon tax system, favourable market-based policies and natural gas transmission and distribution network; increase availability and access to natural gas refuelling stations and public awareness; subsidise vehicle conversion expenses; begin with bi-fuel/dual-fuel automobiles; assign responsibilities; reform gas pricing; partner with automobile producers in Nigeria.

Keywords — CNG; alternative fuel; flaring; transportation; Nigeria

TABLE OF CONTENTS

COVER PAGE

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWELDGEMENT

ABSTRACT

CHAPTER ONE

  • INTRODUCTION
  • BACKGROUND OF THE PROJECT
  • STATEMENT OF THE PROBLEM
  • AIM AND OBJECTIVE OF THE STUDY
  • RESEARCH QUESTION
  • SCOPE OF THE STUDY
  • SIGNIFICANCE OF THE STUDY

CHAPTER TWO

LITERATURE REVIEW

  • REVIEW OF THE STUDY
  • LEGISLATIVE BACKGROUND OF THE STUDY
  • REVIEW OF ALTERNATIVE FUELS
  • THE TRANSPORTATION SECTOR AND THE DEMAND FOR ALTERNATIVE ENERGY
  • STATE OF AUTOGAS TECHNOLOGY
  • NATURAL GAS SUPPLY
  • EMISSION BENEFITS OF NATURAL GAS VEHICLES
  • PETROLEUM AND GREENHOUSE GAS BENEFITS OF NATURAL GAS VEHICLES
  • STATEMENT OF THE GAS POLICY
  • DEFINITION OF GAS FOR THE POLICY
  • GAS MASTER PLAN
  • FEDERAL GOVERNMENT POLICY OF CONVERTING VEHICLES TO RUN ON NATURAL GAS
  • LIMITATIONS TO AUTOGAS IMPLEMENTATION IN NIGERIA
  • GREEN ENERGY INITIATIVES
  • ROLES OF GOVERNMENT-OWNED CORPORATIONS

CHAPTER THREE

METHODOLOGY

  • INTRODUCTION
  • REGRESSION MODELS BASED ON EMISSION DATABASES
  • MODELING
  • VALIDATING

CHAPTER FOUR

  • RESULTS AND DISCUSSION
    • BENEFITS OF NATURAL GAS AS AN AUTOMOBILE FUEL IN NIGERIA
    • PROSPECT FOR CNG IMPLEMENTATION AS AN AUTOMOBILE FUEL IN NIGERIA

CHAPTER FIVE

  • CONCLUSION
  • REFERENCES

CHAPTER ONE

1.0                                                           INTRODUCTION

1.1    Background of the Study

Nigeria has the largest proven natural gas reserve in Africa and the 8th largest in the world with a total of 5,675 bcm (billion cubic metres) (200.41 trillion cubic feet) [1]. The Nigeria National Petroleum Corporation (NNPC) reported that about 51% of associated gas produced was flared between 1990 and 2010. This is equivalent to 53 billion litres gasoline, which is more than 14.5years worth of gasoline consumption in Nigeria [2]. In the past, Nigeria has always been second- worst gas flaring country after Russia [3]. However, Nigeria is finally realizing the potential of natural gas. It is no longer seeing it as a by-product of flaring [4]. Hence, Nigeria has made great progress in cutting down gas flaring by 18% since 2013 according to [4], to less than 8 billion cubic metres in 2015 [5]. A total of 2,836.55 bcf (billion cubic feet) of Natural Gas was produced in Nigeria during the year 2018. Of the natural gas produced, 2,554.47 bcf (90.06%) was utilized, while 282.08 bcf (9.94%) was flared [6]. Though the percentage of flaring has reduced, Nigeria still ranks among the top ten countries flaring gas in 2018. Also, Natural gas production remains low even with the large reserves. PWC estimates that Nigeria economy lost N233 billion to gas flaring in 2018. And Nigeria has put in a lot of effort to abate gas flaring, and this has aided in reducing gas flaring to 9.94% by 2018 [6]. In 2008, the Nigeria gas master plan was approved to help utilize and manage gas resources in Nigeria [11]. Other policies to help abate gas flaring include; Nigeria Gas Flare Commercialization (2017), and Associated Gas Re-injection Act (1979) [7]. All these assisted in the reduction of gas flaring yearly. The transport sector is another major contributor to pollutant emission and energy consumption all over the world. In an attempt to address the problems of gas flaring, transport energy shortage, and high emission from the transportation sector, the government introduced the use of natural gas as automobile fuel in 1997. Nigeria has improved its gas utilization capacity through projects in liquefied natural gas (LNG), gas to liquids (GTL), natural gas to power, and compressed natural gas (CNG) [12]. If CNG is used in transportation, it can lead to urban air improvement, reduction in adverse health, and social effects [13]. The use of CNG as automobile fuel is geared towards sustainable transportation. And CNG is to benefit from Nigeria’s reserves of natural gas.

Igbojionu et al. [14] did a technical and economic analysis of using CNG as fuel for public transportation. The Port Harcourt – Onitsha express road was used as a case study. In the analysis, they considered the cost of designing and laying gas pipeline networks for gas gathering and supply to the CNG refuelling stations, the cost of CNG refuelling stations, and the cost of CNG vehicles. The study observed that although a high capital investment was required mainly from purchasing CNG vehicles and building CNG refuelling stations, it would be both technically and economically viable to use CNG as fuel for public transportation in Nigeria. From the analysis, it took less than 5 years to break even. This analysis agrees with analysis earlier conducted by Anyadiewu et al. [15] who also concluded that CNG as automobile fuel in Nigeria is economically viable.

Within the scope of the authors’ search, no review has been published addressing the nexus of gas utilization and the transportation industry, and discussing specific benefits with viable recommendations. This study hopes to fill this gap in knowledge. This article presents an extensive review of the benefits and recommendations to foster the use of CNG as an alternative fuel for automobiles in Nigeria. CNG is compared with the conventional fuel (gasoline and diesel) used in Nigeria.

1.2      STATEMENT OF THE PROBLEM

According to the Ministry of Petroleum Resources (2017), Nigeria currently produces approximately 4 metric tons per annum (MTPA) of natural gas, mainly for export. Natural gas consumption per day in Nigeria was 3.4 thousand barrels (TB) in 2012—relatively low when compared with countries with similar population size, such as Russia with daily consumption of 404tb; Brazil, with consumption of 226tb per day; and Indonesia, with daily consumption of 160tb (The GlobalEconomy.com, 2018). Despite being the world’s seventh-largest owner of proven gas (Ministry of Budget and National Planning, 2017), Nigeria barely consumes 15% of its over 3MTPA production of natural gas.

Though Nigeria ranks currently as the 8th country in terms of her gas reserve, its gas reserves are still very much underused. At the current rate of utilization, the natural gas reserve in Nigeria would last for over 100 years [8]. Also, gas flaring has led to environmental pollution, community relocation, health and safety issues, and economic loss [9]. Therefore, the best practice for the Nigerian government is the monetization of natural gas as it would have both economic and environmental benefits [10], and much more when it is extended to our transportation sector. Looking at pollution from gas flaring and transportation, using natural gas will reduce pollution from transportation.

1.3      AIM AND OBJECTIVES OF THE STUDY

The main aim of this work is to carry out a research on the use of natural gas as an alternative for automobile fuel in Nigeria, the challenges and the future prospect.

Objectives

The objectives of the study are:

  1. To study the benefit of using natural gas as the alternative to automobile fuel in Nigeria.
  2. To study the past and present NigerianGovernment implementing policies to promote the use of naturally gas-powered vehicles as an alternative
  • To carry out a simulation and modeling on the use natural gas as the alternative to automobile fuel in Nigeria using regression modeling method.
  1. To make recommendations for natural gas implementation as an automobile fuel in Nigeria

1.4      RESEARCH QUESTION

  1. Can natural gas be used as fuel for vehicles?
  2. What are the advantages of using natural gas as a fuel for vehicles?
  • What is natural gas used for in Nigeria?
  1. What is the best alternative fuel for cars?

1.5      SCOPE OF THE STUDY

This work covers the adoption of natural gas as an alternative for automobile fuel in Nigeria. The challenge and future of the adoption were also studied. The study reviewed the extent to which the factors of accessibility and affordability can influence automobile’s fuel shift to natural gas for energy. The study reviewed the past and present Nigerian Government implementing policies to promote the use of naturally gas-powered vehicles as an alternative to fuel power. In the study, the adoption of natural gas as the alternative to automobile fuel was modeled using regression method. Finally, recommendations shall be made on the adoption of natural gas as an alternative for automobile fuel in Nigeria.

1.6      SIGNIFICANCE OF THE STUDY

For 40 years, Nigeria has implemented various plans and policies to drive incremental adoption of natural gas as an alternative for automobile fuel in Nigeria. A transformative-scale adoption and utilization of natural gas for domestic cooking would present an opportunity to reduce Nigeria’s energy poverty, reduce gas flaring and air pollution, reduce deforestation, mitigate erosion, gain carbon credit, and improve the quality of life in Nigeria. Natural gas adoption and utilization for automobile fuel would further diversify Nigeria’s economy from its current crude oil concentration, translating to jobs, reducing unemployment, and other socioeconomic gains. This study may contribute to improving natural gas adoption implementation and thereby contribute to the success of the program.

 

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