A Multicriteria Decision Tool for Prioritizing Gas Monetization Projects in Nigeria

The sharp fall in the trading price of crude oil lately, is gradually leading to a paradigm shift from the dependence on oil as Nigeria’s major source of Gross Domestic Product (GDP). Natural gas is rapidly becoming a global energy product and serves as a substitute for oil, being a cleaner burning conventional fuel, producing lower levels of greenhouse gas emissions than the heavier hydrocarbon fuels. Nigeria is the largest holder of proven natural gas reserves in Africa and the ninth-largest holder globally. Nigeria flares a significant portion of its gross natural gas production, thereby leading to a waste of this non-renewable resource. Consequently, there is the need to diversify in areas such as monetizing gas projects.  This will reduce gas flaring, increase revenue and increase gas conversion while promoting a sustainable hydrocarbon business in a prolonged, low and fluctuating oil price regime. This paper presents the analytical hierarchy process (AHP) decision tool to prioritize gas projects taking cognizance of technical, economic, environmental and health and safety factors of the proposed projects. Based on the findings, the decision tool is able to identify and prioritize gas projects to enhance other forms of revenue generation in Nigeria.