President Muhammadu Buhari, on Tuesday, flagged off the construction of the 614 km Ajaokuta-Kaduna-Kano(AKK) pipeline in Ajaokuta.
The project, according to the Nigerian National Petroleum Corporation, NNPC, will significantly curb gas flaring in the Niger Delta and guarantee better air quality in the oil-producing region.
Ahead of the ceremony, the corporation said: “The pipeline, which was conceived to connect demand from the northern part of the country with supply from the south would be the biggest infrastructure development in the country’s recent history.
“It will also mark a significant shift in the nation’s energy policy; from revenue targeted export programmes to development-focused domestic supply programmes.
“Significantly, the $2.8 billion project will breakthrough today, after seven years of rigorous processes that morphed from policy conception through implementation strategy designs, master-plans and solid implementation programmes.
“The biggest value to the economy is the participation of indigenous engineering firms led by pipeline giant, Oilserv Limited, in the delivery of some of the phases of the project.
“The company has successfully delivered over 17 similar challenging projects in the country, including the engineering, procurement and construction of the 67-kilometre Obiafu/Obrikom to Oben (OB3) 48-inch diameter gas transmission pipeline system.
The Oilserv consortium is slated to deliver the first 200-kilometre phase of the AKK pipeline, which covers the section between Ajaokuta and Abuja, in April 2018.”
According to the Special Assitant to the President on Digital and New Media, Tolu Ogunlesi, the AKK Project is 614km. It is a part of the Trans-Nigeria Gas Pipeline (TNGP) project and will be in two segments. The first segment will be 303km long while the second will be 311km long. The project is being financed through a combination of Debt-Equity financing model, including a loan from Bank of China/SINOSURE, to be repaid through the pipeline transmission tariff and supported by a sovereign guarantee.
Nigeria’s Presidency had confidently said that the AKK “pipeline project is itself a section of an ambitious pipeline project to supply gas to Europe through the proposed Trans-Sahara Gas Pipeline (TSGP) and Nigeria-Morocco Gas Pipelines.”