Welcome to International Journal of Emerging Technologies in Engineering Research (IJETER)

Volume 9, Issue 8, August (2021)

S.No	Title & Authors	Full Text
1	Economic Assessment of Offshore Application of Floating Gas to Liquid Technology in the Niger Delta Wadike Seth Uba, Emenike Nyeche Wami, Adaobi S. Nwosi-Anele Abstract - It is reported that natural gas now represents almost 60% of the contribution made by petroleum in terms of energy equivalence. This growth can be attributed to the environmental premium placed on natural gas since it is far less polluting than the main fossil fuels of coal and oil as well as the expansion witnessed in the economy. Major problems in utilizing natural gas worldwide have been predominantly the high transportation costs compared to crude oil. At the moment, there are a list of gas utilization options. However, converting stranded and marginal gas to liquid products other than LNG, has been receiving considerable attention in recent years. But not much has been done to determine the economic viability of the concepts. This study appraised the economic viability of offshore application of Floating Gas to Liquid Technology (FGTL) in the Niger Delta region of Nigeria in terms of plant capacity using Net Present Value (NPV), Internal Rate of Returns (IRR), and Discounted Payback Time (DPBT). The outcomes of the study showed that offshore gas to liquid processing is economically viable in the region as NPV of $1.3 Billion, $3.5Billion, $9.1Billion and $7.1Billion; Internal Rate of Return of 18%, 22%, 26% and 30% and Discounted Payback Time of 7 years, 9years, 12 years and 14 years were obtained for 10000BPD, 33000BPD, 60000BPD and 120000BPD capacity plants respectively at 15% Discount Rate and $60 per barrel product price. Sensitivity and Risk analysis were conducted using Model Risk and Oracle Crystal Ball respectively. The analysis showed that the Discount Rate, Product Price, and Plant Capacity affect the NPV the most. It also showed that the Discount Rate affects the NPV negatively while the plant capacity and the product price affect the NPV positively. NPV values for the cases considered at different discount rates ranges from $500 Million to $100 Billion. A 75% certainty level was obtained for achieving an NPV within this range, indicating a 25% associated risk.	Download