The aim of this project is to economically analyze Coal Bed Methane (CBM) development in Nigeria. This will offer an opportunity to use gas from the Nation huge coal reserves for domestic and exportation purposes to boost the economy of Nigeria. CBM can be used to generate power as well as manufacture alternative products. The profitability of coal bed methane (CBM) project depends on factors such as seam thickness, gas content, methane content, coal rank and permeability. Its economics are influenced by other variables, such as fiscal policy, depth of coal seam, volume of water disposal, access to market and price of gas. Potential and existing sites for coal bed methane extraction in Nigeria were identified. Kim’s equation was used to estimate the gas content. The gas-in-place was derived with Volumetric method. Methane quantification was estimated using Eddy curve. It is observed that the ultimate reserves, the capital costs, and the gas price have significant effect on the net present value (NPV) and internal rate of returns (IRR) and thus the economic viability of the project. Economic analysis of LNG and Pipeline projects for gas transmission were comparatively examined. It is observed that the gas price and demand at the market hub depend largely on the mode of transmission.
R.R.D Dhir and J.M Mavor. “Economics and Reserves Estimation of Coal-bed Methane Reservoirs”. Oil & Gas J. London, Chapter 8, No. 52. 2016.
W.P Diamond and J.R Levine. “Direct Method Determination of the Gas Content of Coal, Procedures and Results”. Report of Investigations 8515, U.S. Department of the Interior, Bureau of Mines, Washington, D.C. 2015.
G.E Eddy, C.T Rightmire, and C.W Byren. “Relationship of Methane Content of Coal Rank and Depth” Theoretical vs. Observed: Society of Petroleum Engineers, Department of interior, Proceedings, Unconventional Gas Recovery Symposium, Pittsburg, Pennsylvania, SPEDOE 10800, pp 117-122. 2016.
Global Mineral Limited. Proceedings of First Mineral Conference Workshop, Ministry of Solid Minerals Development, Federal Republic of Nigeria, Abuja, pp 1 – 50, 2008.
C.B Gregory and A.K Vello. “Economics of Powder River Basin Coal-bed Methane Development”. Prepared for the U.S. Department of Energy, Washington, Chapter 3, 2015.
J. Karweil. “Advances in Geochemistry”. Oxford Pergamon Press, Pp59-84, 2016.
A.G Kim. “Estimating Methane Content of Bituminous Coalbeds from Adsorption Data” U.S. Bureau of mine, Report of investigations 8245, 1977.
S.W Lambert. "Comparison of Open Hole, Slotting and Perforating Completion Methods for Multiseam Coalbed Gas Wells," Coalbed Methane Symposium, Tuscaloosa, Alabama, pp 262. 2017.
S.M Lloyd and R.Senjen. “Hydraulic Fracturing in Coal Seam Gas Mining, the risks to our Health, Communities, Environment and Climate”. Briefing paper, National Toxics Network, 2015.
A.D McKinney. “Advanced Reservoir Engineering” Gulf Professional Publishing, New York, No. 4, pp680-690, 2015.
M.C Mpadi. “The Impact of the Nigerian Oil and Gas on her Coal Industry”. Proceedings of International Conference on Energy. Port Harcourt, Nigeria. 2014.
Nigerian Coal Corporation. Summary Report on Privatization of Coal Fields across Nigeria. Enugu, 2004.
W. Nugroho and G. Arsegianto. “Economics of Coal-Bed Methane Field Development”. A Case Study of Jatibarang Field, SPE Paper 225311, pp 21, 2015.
G.W Reid, B.F Towler and H.I Harris. “Simulation and Economics of Coal Bed Methane Production in Powder River Basin”. SPE Paper No 24360. Presented at the 1992 SPE Rocky Mountain Regional Meeting, Casper, No. 13, 425-432, 1992.
D.A Simpson, J.F Lea and J.C Cox. “Coal Bed Methane Production”. SPE Paper 80900, Presented at SPE Production and Operation Symposium held at Oklahoma City, Oklahoma U.S.A, 2016.
U.Z.S Youngson and A. Michniewiez,. “Coal-Bed Methane Companies Overview”. Sector Report, Manchester, Chapter 6, pp 18, 2017.
World Bank Report. Federal Government of Nigeria Economic Reform Governance Project, Lagos, Volume1. pp 12-65, 1994.
M.D Zuber and D.E Wicks. "Methane from Coal Deposits Technical Evaluation and Data Base," Quarterly Review of Methane from Coal Seams Technology No.41, 2017.
This work is licensed under a Creative Commons Attribution 4.0 International License.
The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.
Submission of the manuscript represents that the manuscript has not been published previously and is not considered for publication elsewhere.