Design Parameters and Conceptual Analysis on Gas Resource and Infrastructure Management: Trans-Nigeria Gas Pipeline Projects in Nigeria
Abstract
Gas pipeline network and indeed gas infrastructures in the industry are liken to arteries and veins of the body. Blood circulation in the body systems travels through arteries and veins while gas resource travel through network of pipes for industrial and domestic purposes. Nigerian dependency on oil in the last 50years, has been characterised with reserves depletion and infrastructural decays. Therefore, the urgent intervention for Gas Domestication Project cannot be over emphasised. There are endless investment opportunities that abound in the natural gas sector of the Nigerian petroleum industry. At present, the annual gas production in Nigeria is about 2000 BSFC which is remarkable for an oil dominated economy (Figures 1, 2 and 3). Therefore, the initiatives for sustainable gas domestication projects such as the Calabar - Umuahia – Ajaokuta (CUA) and the Ajaokuta – Abuja – Kano (AAK) are laudable in terms of boosting economic resources for future investments. The rapid quests for industrial development of the country necessitate the conceptualization of the Trans Nigerian Gas Pipeline Projects. The project was divided into two segments the Calabar – Umuahia – Ajaokuta (CUA) trunk and the Ajaokuta - Abuja - Kaduna –Kano (AAK) trunk line respectively. The CUA is a 681km, 56” underground single-phase pipeline while the AAK is a 585km, 56” underground single-phase pipeline respectively. The spur lines were design to withstand maximum of 24”and minimum of 22”respectively. The entire project cycle from conceptualization, design and completion were undertaken within two years with about eighty-five (85%) per cent Nigerian Content. The Nigerian engineers and scientists in collaboration with the consultants, deliver the project on schedule (Table 1). The implementation strategy was predicated on the utilization of Critical Path Method (CPM) and Site Man-hour and Cost Control (SMAC) approach for project scheduling, monitoring and evaluation as well as cost control activities all through the duration,(Equations 1-6). Risk determination and safety checks were carried out at each stage for Environmental Impact Assessment (EIA), Front End Engineering Design (FEED), Detailed Engineering Design (DEED), Hazop and Hazid Safety processes, Helicopter Overfly and Right of way Mapping, Cost and Constructability Review and Invitation To Bid (ITB) documentation etc were scheduled and completed. Timely completion of the engineering design and documentation of the project was fundamental to the procurement and construction of the pipeline network. Procurement and construction work schedule are expected to increase industrial development of the country. Efficient gas utilization through gas to power projects, industrial parks along the gas pipeline routes is also affected. This study is expedient in the actual analysis and review of the initial engineering design and safety codes with a view to ensuring compliance with industry standards. The study is also significant as reference material for the actualization of the vision of designing and constructing a world class Trans-Nigerian gas pipeline projects. It will also serve asa reference material for administrators and decision makers on effective deployment and management of resources on gas pipeline projects in Nigeria.
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Introduction
There is a global shift from solid and liquid fossil fuels (coal and crude oil) to cleaner and more sustainable gas and renewable energies. This is due to the global concerns about the effects of energy production and consumption on the environment (Lyons and Plisga, 2005). The Trans – Nigeria Gas pipeline projects were conceptualized to accelerate domestic gas utilization and maximization of the resources for the development of the industrial sector and enhanced economic growth. These projects were broken down into two segments “the Calabar – Umuahia – Ajaokuta” (CUA) and the “Ajaokuta – Abuja – Kaduna – Kano” (AAK) pipeline projects respectively. Fundamental to the industrial revolution of the country is gas resources which the country’s proven reserve is estimated at about 198TSCF. Gas pipeline projects across the globe have been a source of massive income for the country of origin as well as those desiring to tie-in from the producer pipeline routes. The conceptual framework on the Nigeria gas projects and its expected benefits to the transformation of several industrial parks and business pevolution across the country makes it one of the many instruments for sustainable development. Thus, the standard applied methods of project evaluation from conception to commissioning finds its usefulness in this paper using the Critical Path Method (CPM) and Site Man Hour and Cost Control (SMAC). Critical path method (CPM) determines the best period to schedule each event in a project while site man hour and cost control (SMAC) applied to project management aimed at ensuring effective utilization of time and resources for efficient production at minimal cost (Abam 1997).This approach has been adopted in several test cases to address the question of how soon the project will be completed, when is each phase of the schedule meant to start and or finish, what are the critical phases of the project that should be finished on time, what are the cost implication and, how efficient is the performance at the end of the stated period. The Trans-Nigeria Gas Pipeline Projects were designed to have a minimum of twelve gas compressor stations from the beginning in Calabar to the end in Kano.
Conclusion
Gas resources and rapid development of its infrastructures such as the Trans-Nigerian Pipeline Network are fundamental to the increasing transformational needs of the country. Industrial parks and effective domestication of gas utilization can only strive where there are efficient and sustainable gas pipelines of high integrity. The concept of designing, procuring, constructing and commissioning a Trans-Nigerian Gas pipelines from Calabar through Ajaokuta to Kano is critical to economic and human capacity development. Several businesses and industrial concerns were anticipated with strong policy to increase job creations and reduce the number of unemployed in the labour market through new established industries and serving agencies along the pipeline network routes. For ease of administration of the complex projects and as a globally acceptable standard, critical path methods and site man-hour cost control evaluation strategy were applied. This strategic instrument applied in the process conceptual design from start to finish was fundamental to the successful determination of the key performance indicators in the project. The critical path method and site man-hour cost control applied to project management had rigorous project scheduling and milestone evaluation standards. It is the road map that outlines how the project will move from engineering concepts, to completion and site restoration. As a tool it also supported different purposes for different members of the project team. For the Engineer, it provided information on what needs to be done, when it needs to be done, and what other activities may affect the start and completion of his work. It provided a measure of performance evaluation. With the successful completion of the detailed engineering design, documentation and training of the stakeholders on the project, it is recommended that the actual processes of procurement for construction should commence without delay, knowing the overall national benefits that would ensue. Inter-agency politics should be avoided for the interest of the nation and its citizens and the need to Fast Track the development of the nation’s gas resources and its critical infrastructure such as the gas pipelines. It is strongly suggested that the Ministry of Petroleum Resources should be funded to complete the procurement processes using the qualified strong workforce available in the Ministry along with selected consultants. Other stakeholders such as the Nigerian National Petroleum Corporation and the Department of Petroleum Resources should also contribute expertise and technical supports for the actualization and realization of the projects. The rapid growth of Nigerian oil and gas sector through gas utilization and sustainable assets such as pipeline network should attract tax holidays from the government in power to companies involved in construction and commissioning of the projects. Nigeria gas pipeline system document and treated as one complex publication. After the merger, terms and references to all the extensions on the gas pipeline system will be replaced with the new contractual terms. The Gas Pipeline System term in all design documentations and the Procurement and Construction Bid Packages, except for the commercial Milestone Schedule will be further reviewed. At this point, all document containing the conceptual designs and documentation had been completed for use by the supervisory Ministry. It is expected that the original contractors will continue to work with the Ministry of Petroleum Resources to actualize the contractual Milestone Schedule and deliver on the construction of the gas pipelines for the benefit of Nigerians and the stimulation of industrial growth respectively. Further submission for extension of time and additional fund to cover scope changes could also be negotiated where possible (Neeka et al 2010). With the Port Harcourt – Ob – Ob and Kano – Katsina Extension submissions, a new Milestone Schedule is proposed, and it shall be treated separately and parallel with the new Milestone Schedule. In addition, as a separate document with the details of Cost-Time-Resources estimate workout sheets developed, further review and assessment by the Ministerial Project Control Team is important to ensure quality procurement processes. Overall, critical review of the past design data and information is imperative for the actual commencement of the next phase of engineering procurement. Selected management consultants and experts should be engaged for the effective management of the projects. Gas policies should be strengthened to place more emphasis on domestic utilization rather production for exports that is currently the practice. More sectorial collaboration including gas to power, renewable energy gas utilization plan involving the power sector, environment, agriculture and petroleum etc should be worked out strategically.