The Nigerian National Petroleum Corporation (NNPC) is set to break ground on the 40-inchx614km Ajaokuta-Kaduna-Kano (AKK) gas pipeline and stations – the single biggest gas pipeline project in the history of oil and gas operation in Nigeria.
NNPC said that contract agreements have been executed in April 2018 for the engineering, procurement, construction, commissioning and financing for Lots 1 and 3 of the $2.8bn trans-Nigeria gas pipeline project.
Upon completion, 24 months from now, the AKK gas pipeline would enable connectivity between the east, west and north.
It would also facilitate gas supply to key commercial centres in the northern corridor of Nigeria, aid power generation and spur industrial growth.
The contract has been awarded to a consortium of indigenous and Chinese entities under a 100% contractor financing model.
The OilServe/Oando Consortium has been awarded the $855m contract for Lot 1, which has a total length of 40-inchx200km stretching from Ajaokuta to Abuja Terminal Gas Station.
The $835m contract agreement is yet to be executed for Lot 2, which covers 40-inchx193km, stretching from Abuja to Kaduna.
The Brentex/China Petroleum Pipeline Bureau (CPP) Consortium has been awarded a $1.2bn contract for Lot 3, which runs from Kaduna Terminal Gas Station (TGS) to Kano TGS with total length of 40-inchx221km.
NNPC said that these contracts have brought the total value of the project to more than $2.8bn as approved by the Federal Executive Council in December 2017.
NNPC had taken up an aggressive gas reforms and implementation drive, requiring accelerated implementation of gas pipeline infrastructure development with focus on critical pipeline infrastructure to power plants and industries.
From 2010, almost 500km of pipelines had been completed and commissioned and are now delivering gas. The completed pipelines include Oben-Geregu (196km), Escravos-Warri-Oben (110km), Emuren-Itoki (50km), Itoki-Olorunshogo (31km), Imo River-Alaoji (24km) and Ukanafun-Calabar pipeline (128km).
Besides, construction of the East-West OB3 pipeline (127km) is scheduled for completion by the third quarter of 2018 and the expansion of the Escravos-Lagos Gas Pipeline System is scheduled for completion later in 2018.
Furthermore, Nigeria has seen an aggressive drop in gas flaring from a peak of 2,500mmcf/d few years ago to about 700mmcf/d currently.