EVALUATION OF PIPELINE TRANSPORTATION IN THE MARKETING OF PETROL IN NIGERIA
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EVALUATION OF PIPELINE TRANSPORTATION IN THE MARKETING OF PETROL IN NIGERIA
Chapter one
INTRODUCTION
1.1 Background of the Study
Pipeline transportation is Nigeria’s youngest mode of transportation. It has gotten little attention due to two key reasons. One is that it has a relatively recent history.
Two, its operations and services are not under the control of private individuals or companies. As a result, the federal government controls all aspects of pipeline transportation in Nigeria.
According to Kupoheyi (2008), pipes have been used to transport goods for ages. Pipelines are therefore utilised to distribute potable water in metropolitan areas. Though urban water pipeline networks are often short, they follow the same basic principles as those used to distribute petroleum products.
It’s worth noting that pipelines were originally utilised for water distribution. Later, they were used to transfer gases and other liquids within plants, between plants, and between places for separation. Today, pipelines are commonly employed to transfer petroleum products and solids dispersed in liquids over large distances.
Olakunori (2008) said that petroleum pipelines were only recently discovered in Nigeria. According to him, the following items are poured through Nigeria’s pipelines:
– Premium motor spirit (PMS), sometimes known as petrol.
– Automotive Gas Oil (AGO), sometimes known as diesel.
– Household kerosene (HHK).
In addition to these, aviation turbine kerosene (ATW, also known as avgas) is frequently pumped from Mosimi to Ikeja Airport. Pumping is typically done in butches ranging from 15000 to 50000 cubic metres so as to avoid contamination.
The delivery of various product classes into storage is closely monitored and managed by control centres in Mosimi, Warri, Kaduna, and Port Harcourt. Once pumping begins and a product leaves the refinery tanks, its arrival time to any given depot is clearly predicted. (Olusunmade, 2001:7).
Liquefied natural gas (LPG) is transported via the Escravos-Lagos Pipeline (ELP), which is devoted to gas. This is currently the country’s only functioning gas pipeline (Adeyinka, 2000:78).
According to Udensi (1999:36), the Nigerian government plans to expand the gas pipeline to other West African countries in order to promote gas use and capitalise on commercial potential in the subregion. Some of the countries in this regard are.
– Togo
– Benin Republic
– Ghana
– Sierra Leone
— Burkina Faso
– Cape Verde
– Gambia
– Mali
– Mauritania
– Guinea and Chad.
According to Ike (1999), the building of phases I-III pipeline networks enabled the Nigerian government to achieve the following objectives.
– Benin City.
– Kaduna (Product Depots)
– Port Harcourt (Product Depots).
– Lagos
– Warri (Product Depots)
– Yola
II. Providing additional distribution depots in Suleja and Minna.
III. Connecting the Kaduna Refinery products depot to the refineries in Port Harcourt and Warri, not only to make up the output loss there, but also to provide a continuous flow of products to the northern territories in the case of a Kaduna Refinery outage.
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