Umudike Journal of Engineering and Technology

Optimal framework for allocating crude natural gas to its processing options and production of end-user products at Nigerian Liquefied Natural Gas Company, Bonny was determined using mathematical programming to aid revenue maximization and consumers’ satisfaction in this sector. This investigation involved formulation of a crude gas allocation model of this company with revenue maximization as the objective function subject to the constraints of its plant parameters as well as other technical, environmental and market factors of the company/sector. Results revealed 3:1:2:6:17:8:1:2:2:2:1 as the optimal ratio by which the raw gas should be allocated for the production of methane,  ethane, propane, gasoline, ethylene, propylene, butylene, gas oil, naphtha, kerosene and diesel respectively. Contrary to the general view that conversion of the gas to ethylene will yield more revenue due to its high demand. The optimization result also indicated a revenue of  NGN10 billion (USD 48.1million) from processing of crude natural gas based on  this optimal ratio over the existing production schedule of the company which has the raw gas processing options in the ratio of 1:1:1:2:5:2:1:1:1:1:1. In addition to this revenue improvement, allocation of crude natural gas for the production of these end-user products in this ratio also raise the availability of these products to rally with their ever increasing domestic and industrial applications thereby reducing the bottleneck which other sector that depend on these feedstocks are facing due to the shortfall in their supply from the company.