Ajaokuta–Kaduna–Kano (AKK) pipeline
Nigerian President, Muhammadu Buhari on Tuesday launched a $2.6 billion gas pipeline project that will further enhance the country’s energy security, local media reported.
In a virtual meeting, Buhari said the project will provide gas and also facilitate the revival of moribund industries in the West African country.
“Today marks an important chapter in the history of our great nation. It marks the day when our domestic natural gas pipeline networks from Obiafu in Rivers State, Escravos in Delta State and Lekki in Lagos State, are being connected through Kaduna to Kano states thereby further enhancing national energy security,” the Nigerian National Petroleum Corporation (NNPC) quoted Buhari as saying.
The Ajaokuta–Kaduna–Kano (AKK) pipeline is a 614-kilometer (381.5-miles) pipeline developed by Nigerian National Petroleum Corporation (NNPC) to transport natural gas from southern Nigeria to central Nigeria.
The project represents phase one of the 1,300-km (808-mi) Trans-Nigerian Gas Pipeline (TNGP) project, which is being developed as part of Nigeria’s Gas Master Plan to utilize the country’s surplus gas resources for power generation as well as for consumption by domestic customers,
The Nigerian National Petroleum Corporation (NNPC), disclosed that financing for the Ajaokuta-Kaduna-Kano (AKK) gas pipeline would be provided by China andSinosure.
Group Managing Director of the NNPC, Mallam Mele Kyari, reportedly stated that all the required conditions precedent for closing the debt financing had been provided and the process of obtaining internal approvals by the lenders was in progress to enable financing close by August 2020.
He said, “The EPC contract for the 614 kilometers AKK gas pipeline project was awarded at a total contract sum of US$2.592 billion to Messrs. Oilserv Plc/China First Highway Engineering Company (Oilserv/CFHEC Consortium) for the first segment covering 303km and Messrs. Brentex Petroleum Services/China Petroleum Pipeline Bureau (Brentex/CPP Consortium) for the second segment covering 311km under a debt-equity financing model with loan from Bank of China and SINOSURE, to be repaid through the pipeline transmission tariff and supported by a sovereign guarantee.”
Source / More information :Media
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