Pipeline Transportation And Its Significance To The Marketing Of Petroleum Products In Nigeria
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.
- The use of Pipelines facilitates the effective distribution and marketing of petroleum products in Nigeria.
- Pipelines reduce the costs of transporting and marketing petroleum products in Nigeria.
- Pipeline vandalisation is the major problem impeding the effective use of Pipelines for the distribution and marketing of petroleum products in Nigeria.
- The use of alarm systems and police patrol will reduce the incidence of pipeline vandalization in Nigeria.
Table of Contents
- 1.1 Background of the Study
- 1.2 Statement of the Problem
- 1.3 Objectives of the Study
- 1.4 Research Hypothesis
- 1.5 Significance of the Study
- 1.6 Scope And Delimitations of the Study
- 2.1 Historical developments of pipeline transportation
- 2.2 The features of pipeline
- 2.3 Pipeline transportation and the marketing of petroleum products in Nigeria
- 2.4 Impediments to pipeline transportation in nigeria
- 2.5 Prospects of pipeline transportation in nigeria
- 2.6 Summary of Related Literature Review
- 3.1 Research Design
- 3.2 Are of the Study
- 3.3 Sources of data
- 3.4 Population of the Study
- 3.5 Sample size and Sampling Method
- 3.6 Instrument for Data Collection
- 3.7 Validity of the Instrument
- 3.8 Reliability of the Instrument
- 3.9 Method of Data Collection
- 3.10 Method of Data Analysis
Data Presentation and Results
- 4.1 Data Analysis
- 4.2 Summary of Results
Discussion of Results, Conclusions and Recommendations
- 5.1 Discussion of Result
- 5.2 Conclusions
- 5.3 Recommendation
- 5.4 Suggestions for Further Studies
- 5.5 Limitations of the Study
- Appendix (the questionnaire)
List of Tables
- Table 4.1 Sex of Respondent
- Table 4.2 Age of Respondent
- Table 4.3 Occupational Status of Respondent
- Table 4.4 Observations made on the Respondents as to whether or not Pipelines are reliable means of Distributing and Marketing of Petroleum Products.
- Table 4.5 Observations made on the Respondents as to whether or not Pipelines reduce the cost of Transporting/Marketing of Petroleum Products.
- Table 4.6 Observations made on the Respondents as to whether or not Pipeline Vandalisation impedes Effective Marketing/Distribution of Petroleum Products.
- Table 4.7 Observations made on the Respondents as to whether or not the use of Alarm system and police patrol will reduce the incidence of Pipelines vandalization in Nigeria.
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.
- Benin Republic
- Sierra Leone
- Burkina Faso
- Cape Verde
- 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)
- Warri (Product depots)
Provision of additional distribution depots at Suleja, and Minna
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.
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.
The de-bottlenecking of limited capacity of the existing 6 inches diameter pipelines between Jos and Gombe.
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:
- To examine the relevance of pipelines to the efficient distribution and marketing of petroleum products in Nigeria.
- To identify the constraints/problems of pipeline transportation of petroleum products in Nigeria
- To suggest realistic solutions to thee problems
- 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:
- 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.
- 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.
- H0: Pipeline vandalization 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.
- 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).
Discussion of Results, Conclusions and Recommendation
This chapter dealt with the discussion of the major results of the research on pipeline transportation and its significance to the marketing of petroleum products in Nigeria. This chapter also contain the conclusions and recommendations of the study.
5.1 Discussion of Results
The discussions and analyses done in this research led to the findings explained below.
The acceptance of alternative hypothesis one led to the inference that pipelines are highly reliable means of distributing and marketing petroleum products. This inference is validated by the fact that pipeline transportation is the most automated among the various mode of distributing petroleum products. Also pipelines affords the use of microwave communication devices as well as the electronic computer. It equally makes routing and scheduling of the arrival of products at terminals easy. In addition, since there are no traffic congestion, weather interference and interchanges, the petroleum products transported through pipelines arrives at destinations of the scheduled time.
The acceptance of alternative hypothesis two indicates that pipelines reduce the cost of transporting and marketing petroleum products in Nigeria. This is because once the pipelines and pumps are installed, the operating and maintenance costs are very low. Also the costs of operating pipeline systems to the environment are very minimal. Land space requirement is lower than that of road and railway. Noise pollution and environmental degradation is also low.
The acceptance of alternative hypothesis three revealed that pipeline vandalization impede the effect use of pipelines for the distribution and marketing of petroleum products in Nigeria. This inference is valid when viewed in the light of the acute fuel shortages caused by deliberate damages to the pipelines used to convey refined products to various distribution centres.
The acceptance of alternative hypothesis four showed that the use of alarm systems and constant police patrol will reduce the incidence of pipeline vandalization in Nigeria.
Based on the above findings, the researcher made the following conclusions;
- The use of pipelines facilitates effective distribution and marketing of petroleum products in Nigeria. Such products include; premium motor spirits (PMS) or petrol, automotive gas oil (AGO) or diesel, household kerosene (HHK) and aviation turbine kerosene (HHK).
- Pipelines reduce the cost of transporting and marketing petroleum products in Nigeria.
- Pipeline vandalization impedes the effective use of pipelines for the distribution and marketing of petroleum products in Nigeria.
- The use of alarm systems and police patrol will reduce the incidence of pipeline vandalization in Nigeria.
The researcher recommended the following:
- The federal government should construct more pipelines to link all the states of the federation and various distribution centres of NNPC.
- The NNPC should install effective alarm systems on all the pipelines in the country. They should also liaise with the Nigerian Police Force so as to effectively constitute a police patrol team that would regularly monitor the pipeline network in the country. These strategies would help to curb the problem of pipeline vandalization in the country.
- As a precautionary measure for preventing deliberate damage to pipeline, the NNPC authorities, should wherever possible, bury petroleum product pipelines many meters under the ground.
5.4 Suggestions for Further Studies
The need for further studies in pipeline transport is not closed by this pioneer work hence the researcher suggests that further work should be carried out on special areas as pipeline vandalization, pipeline maintenance, as well as the relevance of water transport to the marketing of petroleum products.
5.5 Limitations of the Study
Some limitations imposed constraints on this study, ranging from data collection to data analysis and resting. One is that the time given for this study was not adequate for a research of this nature. There was also a scarcity of research materials hence the researcher was forced to limit himself to the available time as well as further delaying the progress of the study.
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