Construction to begin on $2.8bn AKK gas pipeline project in Nigeria

WCN Editorial Team 30 Jun 2020 AFRICA ENERGY & UTILITIES

The Nigerian Government is set to flag-off the construction of the Nigerian National Petroleum Corporation’s (NNPC) $2.8bn Ajaokuta-Kaduna-Kano (AKK) gas pipeline project.

NNPC Group Public Affairs Division group general manager Dr Kennie Obateru said that the presidential flag-off for the project is planned to be performed virtually from the Aso Rock Villa in Abuja with simultaneous link to two locations: Rigachukun, Kaduna State and Ajaokuta Steel Complex, in Kogi State.

Scheduled to be completed within a 24-month timeline, the 614km pipeline represents the phase one of the 1,300km-long Trans-Nigerian Gas Pipeline (TNGP) project.

The TNGP project forms part of the broader 4,401km-long Trans-Saharan Gas Pipeline (TSGP), which will export natural gas to customers in Europe.

Expected to boost domestic natural gas utilisation for Nigeria’s economic development, the AKK pipeline will run from Ajaokuta, in Kogi State and traverse Abuja (FCT), Niger, Kaduna and terminate at Kano.

NNPC said that the project would unlock 2.2 billion cubic feet of gas to the domestic market as well as support the addition of 3,600MW of power to the national grid.

About 85% of the capital cost for the project will be funded by the Industrial and Commercial Bank of China (ICBC), Bank of China, and Infrastructure Bank of China. Sinosure, China’s Export Credit Agency (ECA), will provide insurance cover.

The remaining 15% for project cost is planned to be funded by the contractors that include Oilserve/Oando consortium, as well as Brentex/China Petroleum Pipeline (CPP) Bureau consortium.

The project will have the capacity to transport 3,500 million metric standard cubic feet per day (mmscfd) of dehydrated wet gas from several gas gathering projects located in southern Nigeria.

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The Ajaokuta-Kaduna-Kano gas pipeline project in Nigeria is estimated to cost $2.8bn. (Credit: Arulonline from Pixabay)

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