Research Article
Economic Comparison of Storage of Natural Gas as Liquefied Natural Gas and Compressed Natural Gas: A Niger Delta Case Study
Anthony Ogbaegbe Chikwe,
Onyebuchi Ivan Nwanwe*,
Jude Emeka Odo,
Dominic Elechi,
Christian Emelu Okalla
Issue:
Volume 11, Issue 5, September 2023
Pages:
79-85
Received:
30 July 2023
Accepted:
3 November 2023
Published:
22 December 2023
Abstract: The worldwide demand for a safe and unpolluted climate combined with the need of adapting stranded gas fields to fulfill the developing need for Natural gas on the planet today has required comprehension of the scope of potential for business acknowledgment of Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG) facilities. This places a significant weight on the monetary assessment measure which will give the most extreme knowledge into the reason for a choice to put or not to put resources into the LNG or CNG. In this study, an economic comparison was conducted between LNG and CNG as gas storage methods. The economic indicators utilized in this project were the Net Present Value (NPV), the Internal Rate of Return (IRR), and the payback period (PBP). The LNG and CNG cases had plant capacities of 5.2MMTPA and 2.6MMTPA respectively, a discount rate of 15 %, and a project life of 24 years. Results from economic analysis depict NPV, IRR, PBP, and profitability index values of $14,000,000, 15%, 7 years 6 months, and 1.76 for CNG and $3,077,000,000, 26%, 5 years, and 4 months, and 1.01 LNG respectively. It can be inferred from the results of this study that when the same amount of feed gas is supplied to an LNG and a CNG facility, an LNG was found to be more profitable than CNG as a gas storage method. This is because the LNG method resulted in a higher NPV, a higher IRR, a lower PBP, and a higher profitability index than that obtained for the CNG method. Based on the results of this study, natural gas should be stored as LNG rather than as CNG.
Abstract: The worldwide demand for a safe and unpolluted climate combined with the need of adapting stranded gas fields to fulfill the developing need for Natural gas on the planet today has required comprehension of the scope of potential for business acknowledgment of Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG) facilities. This places a si...
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