The construction works on the 40-inch x 614km Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project, which was conceptualized as an integral part of the Nigerian Gas Master Plan (NGMC) and approved by the Federal Executive Council back in 2008, is set to break grounds this month following a virtual flag-off by President Muhammadu Buhari on 30th June.
This was revealed by Dr. Kennie Obateru, the Group General Manager for the Group Public Affairs Division of the Nigerian National Petroleum Corporation (NNPC).
Implementation of the project.
The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project will be carried out in three phases under a build and transfer (BT) model, in a public-private partnership (PPP) arrangement. The first phase covers an area of approximately 200 kilometers between Ajaokuta and Abuja. It is planned to cost about US $855M and it is to be implemented by a consortium comprising OilServe and Oando PLC under an engineering, procurement, and construction (EPC) contract.
The second phase runs from Abuja Gas Terminal to Kaduna Gas Terminal, a distance of 193 kilometers and it is budgeted at US $835M while the third phase is approximately 221 kilometers from Kaduna to Kano and it is to be executed by the Brentex Petroleum services Limited ft China Petroleum Pipeline Engineering consortium under a US $1.2bn EPC contract.
The entire project is expected to take 24 months from the date of commencement to complete.
Expectations for the project
Upon completion, the AKK Gas Pipeline project is expected to boost the domestic utilization of natural gas for Nigeria’s social-economic development.
It will arguably unlock approximately 2.2billion cubic feet of gas to the domestic market, support the addition of 3,600mega watts of power to the national grid and help with the revitalization of textile industries which alone boasts of over 3 million jobs in parts of the country.
Furthermore is expected to support the development of Petrochemicals, fertilizer, methanol, and other gas-based industries thereby generating employment opportunities and facilitating Balanced Economic Growth.