Page 12 - DMEA Week 33

DMEA PIPELINES DMEA

NNPC determined to finish

AKK gas pipeline on schedule

AFRICA STATE-OWNED Nigerian National Petroleum “This is the first time an NNPC project is hav-
Corp. (NNPC) is determined to ensure that work ing a steering committee led by the GMD [group
on the Ajaokuta-Kaduna-Kano (AKK) natural managing director], comprising top manage-
gas pipeline remains on schedule, according ment of NNPC and key external stakeholders
to the head of the company’s Nigerian Gas Co. from the office of the chief of staff, representa-
(NGC) subsidiary. tives of [the] Ministries of Justice, Finance and
According to Seyi Omotowa, NGC’s man- National Planning, CBN[Central Bank of Nige-
aging director, NNPC wants to see the AKK ria], Debt Management Office as well as NEITI
scheme implemented properly and on time. All [Nigeria Extractive Industries Transparency
participants in the pipeline project are taking Initiative],” he explained.
steps to ensure that they meet their obligations Omotowa further stated that NNPC was con-
and finish construction within 24 months as sidering increasing its equity stake in the pipe-
planned, he said during an online conference line from the current level of 15%.
last week. If the company takes this step, he said, it will
Omotowa did not identify any specific pre- not have to borrow so much to cover the costs of
ventative measures. He did say, though, that construction.
Nigeria was trying to avoid problems that have NNPC is financing 85% of the $2.8bn project
derailed similar infrastructure initiatives in the with a loan facility from China Export & Credit
past, such as the need to change plans in response Insurance Corp. (Sinosure). The credit is due to
to field conditions, challenges in selecting con- be repaid over a period of 12 years.
tractors, failure to define the scope of projects When finished, the AKK pipeline will follow
and unrealistic scheduling. a 614-km route, running northward from the left
“We believe that from the experience we will bank of the Niger River in Kogi state to the capi-
bring along with other partners in construction tal city of Kano state.
technologies of the consortium, it will help in It will serve as the first section of the Trans-Ni-
achieving the timeline for completion. Things geria Gas Pipeline (TNGP) but will also pump
are being done differently on the AKK project, gas to domestic TPPs, thereby making electricity
by the application of the transparency, account- more widely available throughout the country.
ability and performance excellence initiative,” he The pipe will have a design capacity of 3.5bn
was quoted as saying by This Day. cubic feet per day (99.11mn cubic metres per
He also stressed that the Nigerian govern- day, or about 36.175bn cubic metres per year).
ment’s plans for project governance would allow Initially, throughput will amount to 2 bcf per day
for proper oversight. Multiple agencies have (56.64 mcm per day, or around 20.67 bcm per
been appointed to monitor the construction of year). It will significantly increase the volume of
the AKK line, he said. gas available on Nigeria’s domestic market.™

P12 www. NEWSBASE .com Week 33 20•August•2020