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HomeTop NewsAKK gas pipeline near 70% completion with $1.1 bln committed so far...

AKK gas pipeline near 70% completion with $1.1 bln committed so far ~NNPC

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By Samuel Bankole

The Nigerian National Petroleum Company Limited (NNPC) announced on Monday that the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project is approaching 70% completion.

While inspecting the project sites in Ahoko, Kogi State, the energy firm’s group managing director, Mele Kyari, stated that the project is almost 70% complete, with over $1.1 billion already released to finance the project.

“Earlier today, Group CEO @MKKyari, on an inspection tour of one of the #AKKGasPipeline project sites in Ahoko, Kogi State said the project is almost at 70 percent completion, with over $1.1bn so far released to finance the project,” the energy firm tweeted.

Last week, President Mohammadu Buhari said the is now 43 percent completed.

The president said this while speaking at the 2023 Nigeria International Energy Summit (NIES) in Abuja.

The president said this project would help generate 3.6 gigawatts of electricity and provide support for gas-based industries.

The AKK pipeline is a 614km-long natural gas pipeline being developed by the NNPC. It will run from Ajaokuta to Kano in Nigeria.

READ ALSO: Nigerian Breweries to borrow €110 mln from Heineken to offset debts

Estimated to cost $2.8 billion, the pipeline project forms phase one of the Trans-Nigeria Gas Pipeline (TNGP) project.

It was initially meant to beg implemented via a build and transfer (BT) public-private partnership (PPP) model, which involves the contractor providing 100 percent of the funding.

However, Kyari said on Monday that the oil firm has so far expended $1.1 billion on the project completely from the company’s cash flow.

“As we speak now, we don’t owe a dollar to our contractors today. We paid all their invoices. There are over 30 active sites today in this project, and we are very hopeful that we will deliver this project.

“We have so far spent over $1.1 billion on this project from our cashflow. We are a commercial company today. We have inter-company laws within our company now. This company can fund this project, so we do not need any support to deliver this project now.”

“We are a very different company today. We are a commercial company now,” Kyari said.

Construction was commenced in July 2020 with commissioning scheduled for 2022.

It will feature a diameter of 40in and is expected 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.

(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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