Abstract

Global warming, or the 'greenhouse effect' is an environmental issue that deals with the potential for global climate change due to increased levels of atmospheric 'greenhouse gases'. Natural gas offers a variety of environmental benefits and environmental friendly uses. It is becoming an increasingly important fuel in the generation of electricity.

Power generating companies and other users of industrial gas would later in the year begin to pay more for the commodity after the Federal Government approved a 400% increase in price of gas to power for the domestic market. The new price is capped at $3 per thousand cubit feet. Mrs. Allison-Madueke (Minister of Petroleum Resources) said Government decided to harmonize the domestic and export market rates so as to attract investment in the gas sector and make the domestic gas market more attractive for its operators.

In this study, the feasibility of using gas to power UNIPORT and it's environ was considered since there is proximity to source of gas (Agbada Flow Station 1, Aluu, Rivers State). An economic evaluation was done using real and estimated values of the input parameters. The old gas price and tariff of electricity with the new gas price and estimated tariff of electricity were used for economic evaluation to create a cashflow model then get the NPV's , IRR, DPIR,GRR, and the Payback Periods which were used as the profitability indicators for this investment.

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