The Nigerian National Petroleum Corporation (NNPC) says it has signed a $2.8bn agreement for the Ajaokuta-Kaduna-Kano (AKK) gas pipeline and stations with a consortium of indigenous and Chinese companies.
The agreement covers engineering, procurement, construction, commissioning and financing under a 100 percent contractor financing model.
Maikanti Baru, group managing director, NNPC said the AKK gas pipeline was a section of the Trans-Nigerian Gas Pipeline (TNGP) under the gas infrastructure blueprint designed to enable the industrialisation of the eastern and northern parts of Nigeria.
The project will also enable connectivity between the east, west and north, which is currently non-existent.
The federal executive council (FEC) had during a meeting held on December 13, 2017 approved the project following technical and commercial evaluation.
Under the terms of contract, Lot 1 with total length of 40inch x 200km stretching from Ajaokuta to Abuja terminal gas station was awarded to the OilServe/Oando Consortium.
Lot 3 which runs from Kaduna terminal gas station (TGS) to Kano TGS with total length of 40inch x 221km was awarded to the Brentex/China Petroleum Pipeline Bureau (CPP) Consortium.
Baru noted that the AKK section has suffered “setbacks” due to scarce resources for government to fully finance the project, hence the adoption of the contractor financing model.
“The contract agreement for Lot 3 which covers 40inch x 193km stretching from Abuja to Kaduna will be executed in the weeks ahead,” Baru said.
“The two other pipelines, the OB3 & ELPs 2 in the Gas Master Plan blue print, are currently at various stages of completion and are being financed directly by the Federal Government.”
Nigeria has the world’s ninth largest gas reserves estimated at 800 tcf, but the lack of infrastructure hampered economic utilisation of the resource. - Cable Nigeria
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