Development of Domestic Gas Supply and Utilisation Prices for Effective Gas Distribution in Nigeria

Every resource produced by a country should necessity satisfy the needs and demands of its populace before consideration is made for export. This will ensure that sufficient in production allocation resources. While Nigeria regarded internationally as major gas producer world, her local consumption natural limited due to unavailability domestic utilisations fuelled large margins between international pricing gas. At markets, attracts higher price market conditions while prices are relatively lower at level probably routes utilisation resource. Because this, producers prefer sell their commodity creating scarcity levels. has heralded underdevelopment manufacturing sector indigenous companies thrive on situation can be ameliorated developing model effective utilization distribution Nigeria. The determine optimum sale make profit also available locally. In this study, emphasis development supply incorporates cost producing unit volume producer, energy value quantity demanded based produced, utilised, flared, requirement aggregate various companies. Results show total revenue accruable from flare $1.877B/yr which than DGSO deficit $0.595B/Yr. Thus, it better resort not flaring. Analysis results shows provided incentive closes gap through reduction penalty price. Therefore, serves direct incentives who meet with DGSO. impact penalty.