A Techno-Economic Analysis of Using Natural Gas as Alternative Transport Fuel in Nigeria

Abstract

The increasing rate of population and the consequent increasing demand for transportation and higher number of vehicles has resulted in an increase in the CO2 emitted by the transport sector in Nigeria, this has increased the need for alternative fuel for the transport sector in Nigeria. this study comparatively analyses and compares the technical and economic aspects of using two natural gas fuel forms (CNG and LPG) as alternative transport fuel in Nigeria. The study evaluated the total annual CO2 emissions, the total monthly fuel consumption, the effect of fuel price and the annual fuel cost savings from using these natural gas fuels as alternative fuel to the widely used liquid petroleum fuels. The profitability of using these natural gas fuels were also evaluated using economic parameters of net present value (NPV) and payback period (PP). The study was conducted using a privately owned vehicle converted from diesel or petrol driven to gas-driven travelling 100km daily for 28 days a month within Abeokuta city of Ogun State Nigeria. Results of this study revealed that running a vehicle on natural gas fuels significantly reduced the total annual CO2 emission and also saved cost on fuel enough to recover the initial cost of converting the vehicle within the first few years of running the vehicle. Results of the economic analysis showed how profitable an investment in natural gas fuels is, with positive net present values at 10% discount rate for natural gas fuels provided the gas price was maintained below the gasoline price. This study recommends that the government develop policies that would encourage and increase private participation in this sector