The economic value of natural gas in residential and commercial markets

Is it feasible to develop gas distribution systems to serve residential and commercial (R&C) markets? In many developing countries there exists an abundant supply of inexpensive natural gas that could be used as an alternative fuel to answer the energy demands of urban areas. Presently, many countries are relying on such expensive fuels as LPG, kerosene and diesel. Gas development strategies have not been formulated to ensure the maximum economic use of their resources. The objective of this study is thus to determine the cost effectiveness of supplying (R&C) markets with natural gas. The basic approach used was to create a simulation model that could be used to calculate system costs and economic netbacks using a variety of technical and economic parameters. The conclusion reached was that it is an economically attractive proposition to supply (R&C) markets with natural gas.