Abstract: “Nigeria is committed toward developing its Natural Gas energy subsector in order to address the energy trilemma in the country; as a result, Nigerian Gas master plan proposes new gas pipeline. The paper analyzes the life cycle cost (using Shahanon Pipeline Cost Model) of the Gas pipeline networks (FRA) proposed in the plan, and introduces additional and separate pipeline system (SRA) for comparison. SRA pipeline represents 67% increase on the FRA pipeline capacity, 115% increase on the FRA’s capex and 152% increase in kilometer distance, and as a result, led to increase in Levelised Gas Transportation Cost (LTC) by 25%. This justifies that higher increase in capacity results to relatively modest increase in LTC. The effect of adjusting pipeline capacities on LTC was also observed, and LTC was discovered to fall continuously as capacity increases. The study concluded that, it is more economical to have large gas pipeline capacities and operate pipelines at their full capacities, as more”

Keywords: Levelised Gas Transportation Cost (LTC), First Route Alternative option (FRA), Second Route Alternative option (SRA)