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ABSTRACT
This Research examined the relevance of Pipeline transportation to
the marketing of Petroleum products in Nigeria. Toward this end 83 staff
of the Nigeria national Petroleum Corporation (NNPC)’s offices in Enugu
and Port-Harcourt were randomly selected to form the study sample. The
83 members of the study sample were given 83 copies of structured
questionnaires to complete. Their responses were used to test four
hypotheses formulated for this study. The result of the test/analyses
revealed the following findings.
i. The use of Pipelines facilitates the effective distribution and marketing of petroleum products in Nigeria.
ii. Pipelines reduce the costs of transporting and marketing petroleum products in Nigeria.
iii.
Pipeline vandalisation is the major problem impeding the effective use
of Pipelines for the distribution and marketing of petroleum products in
Nigeria.
iv. The use of alarm systems and police patrol will reduce the incidence of pipeline vandalization in Nigeria.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Pipeline
transportation is the youngest among the other means of transportation
in Nigeria. It has not received much attention because of two major
factors. One is that it is relatively a recent origin. Two is the its
operations and services are not in the hands of private individuals and
companies. Hence everything about pipeline transportation in Nigeria is
strictly in the hands of the federal government.
According to
Kupoheyi (2000) pipelines have been in use for transporting materials
for centuries. Hence in the urban areas, pipelines are used for
distributing potable water. Though the pipelines network for the
transportation and distribution of water in urban areas are usually
short, they uses the same basic principles as the ones for distributing
petroleum products. The point to note here is that pipelines were first
used for distributing water. Later they were used for mooring gases and a
variety of liquids within plants, between plants, as well as between
locations for apart. Today pipelines are widely used for transporting
petroleum products and some solids that are suspended in liquids over
long distances.
Olakunori (2000) reported that petroleum pipelines
made only recent discovery into Nigeria. According to him, the products
pumped through the Nigeria pipelines include the following
- Premium motor spirit (PMS) otherwise know as petrol;
- Automotive Gas Oil (AGO), otherwise known as diesel;
- Household Kerosene, (HHK).
In
addition to these, avaiation turbine kerosene (ATW, otherwise known as
avgas, is often pumped from Mosimi to Ikeja Airport regularly. Pumping
is usual done in butches of between 15000 to 50000 cubic meters in such a
way as to avoid contamination. Delivery of the various products grades
into storage is strictly monitored and controlled from the control
centres located in Mosimi, Warri, Kaduna, and Port Harcourt. Once
pumping begins and a product leaves the refinery tanks, its arrival time
at any particular depot can easily be forecasted. (Olusunmade, 2001).
Liquefied
natural gas (LPG) is pumped through the Escravos – Lagos Pipeline (ELP)
dedicated to gas. This, at present, is the only operational gas
pipeline that has been completed in the country (Adeyinka, 2000).
According to Udensi (1999) the Nigeria government intends to extend the
gas pipeline to other West African countries in order to encourage gas
utilization and exploit the commercial opportunities in the sub-region.
Some of these countries in this regard include.
- Togo
- Benin Republic
- Ghana
- Sierra Leone
- Burkina Faso
- Cape Verde
- Gambia
- Mali
- Mauritania
- Guinea and Chad.
Ike
(1999) stated the construction of phases I-III pipeline systems enabled
the Nigerian government to achieve the following objectives.
- Benin city
- Kaduna (Product depots)
- Port Harcourt (Product depots)
- Lagos
- Warri (Product depots)
- Yola
II. Provision of additional distribution depots at Suleja, and Minna
III.
Connection of Kaduna Refinery products depot with the refineries a Port
Harcourt and Warri, not only to make up the production shortfall there,
but also to ensure the continued supply of products to the northern
areas in the event of Kaduna Refinery outage.
IV. Construction of
facilities to enable products to be pumped from Port-Harcourt to the
Western areas via Benin, not only to augment Warri Refinery production,
but also to continue supplies in the event of total outage.
V. The de-bottlenecking of limited capacity of the existing 6 inches diameter pipelines between Jos and Gombe.
VI
Putting in place some alterations, upgrades and repairs within the
existing system necessary to accommodate the new facilities.
In
addition, with the completion of the nation’s pipeline interlink
project, the total route of Nigeria’s products distribution pipelines
and depots complex has grown to 4,950 Kilometers. This is made up of
pipelines of various diameters linking twenty storage depots.
1.2 STATEMENT OF THE PROBLEM
Pipelines has been
identified as been vital for efficient transportation and distribution
of petroleum products, Although Nigeria had completed and commissioned
phases I-III pipeline system, the nation had, on man occasional,
suffered from petroleum products scarcity which ahs caused untold
hardship to the masses. In addition, the country’s mass media had, on
many occasions, carried sad news relating to the victims of kerosene
explosions and other related home accidents caused by petroleum
products. Al thee are evidences of inefficiency in the operation and
management of the nation’s pipeline system. Had the construction of
pipeline facilitated the distribution of petroleum product in Nigeria?
What are the strategies for improving the nation’s pipeline system?
These questions present the problems that necessitated this research.
1.3 OBJECTIVES OF THE STUDY
The objectives of this research are as follows:
i. To examine the relevance of pipelines to the efficient distribution and marketing of petroleum products in Nigeria.
ii. To identify the constraints/problems of pipeline transportation of petroleum products in Nigeria
iii. To suggest realistic solutions to thee problems
iv.
To highlight the strategies for improving on the nation’s pipelines so
as to ensure efficient marketing of petroleum products in the country.
1.4 RESEARCH HYPOTHESES
The following hypotheses were tested in this study/research:
Hypothesis One
H0: Pipelines are not reliable means of distributing and marketing petroleum products. in Nigeria.
H1: Pipelines are highly reliable means for distributing and marketing of Petroleum products in Nigeria.
Hypothesis Two
H0: Pipelines do not reduce the cost of transporting and marketing petroleum products in Nigeria.
H1: Pipelines reduce the cost of transporting and marketing petroleum products in Nigeria.
Hypothesis Three
H0:
Pipeline vandalizations do not impede the effective use of pipelines
for distribution and marketing of petroleum products in Nigeria.
H1:
Pipelines vandalization impedes the effective use of pipelines for the
distribution and marketing of petroleum products in Nigeria.
Hypothesis Four
H0: The use of alarm systems and police patrol will not reduce the incidence of pipeline vandalization in Nigeria.
H1: The use of alarm system and police patrol will reduce the incidence of pipeline vandalization in Nigeria.
1.5 SIGNIFICANCE OF THE STUDY
The findings and
recommendations to be made in this study, when implemented, will benefit
all Nigerians as well as the government. For one thing, the
implementations of the recommendations of this study will reduce the
incidence of pipeline vandalization in Nigeria. In addition, the problem
of fuel scarcity will equally be eliminated. Thus the average Nigeria
will have access to petroleum products at a reduces cost anytime,
anywhere. Also the incidence of kerosene explosion will become a thing
of the past.
1.6 SCOPE AND DELIMITATIONS OF THE STUDY
The
scope of this study borders on pipeline transportation and its relevance
to the marketing of petroleum products. This research will be limited
to the Enugu and Port Harcourt offices of the Nigeria National Petroleum
Corporation (NNPC).
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