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NNPC determined to finish

AKK gas pipeline on schedule

NIGERIA STATE-OWNED Nigerian National Petroleum “This is the first time an NNPC project is
Corp. (NNPC) is determined to ensure that having a steering committee led by the GMD
work on the Ajaokuta-Kaduna-Kano (AKK) [group managing director], comprising top
natural gas pipeline remains on schedule, management of NNPC and key external stake-
according to the head of the company’s Nigerian holders from the office of the chief of staff, repre-
Gas Co. (NGC) subsidiary. sentatives of [the] Ministries of Justice, Finance
According to Seyi Omotowa, NGC’s man- and National Planning, CBN [Central Bank of
aging director, NNPC wants to see the AKK Nigeria], Debt Management Office as well as
scheme implemented properly and on time. All NEITI [Nigeria Extractive Industries Transpar-
participants in the pipeline project are taking ency Initiative],” he explained.
steps to ensure that they meet their obligations Omotowa further stated that NNPC was
and finish construction within 24 months as considering increasing its equity stake in the
planned, he said during an online conference pipeline from the current level of 15%. If the
last week. company takes this step, he said, it will not
Omotowa did not identify any specific have to borrow so much to cover the costs of
preventative measures. He did say, though, construction.
that Nigeria was trying to avoid problems that NNPC is financing 85% of the $2.8bn project
have derailed similar infrastructure initiatives with a loan facility from China Export & Credit
in the past, such as the need to change plans Insurance Corporation (Sinosure). The credit is
in response to field conditions, challenges in due to be repaid over a period of 12 years.
selecting contractors, failure to define the scope When finished, the AKK pipeline will follow
of projects and unrealistic scheduling. a 614-km route, running northward from the
“We believe that from the experience we will left bank of the Niger River in Kogi State to the
bring along with other partners in construction capital city of Kano State. It will not only serve as
technologies of the consortium, it will help in the first section of the Trans-Nigeria Gas Pipe-
achieving the timeline for completion. Things line (TNGP) but will also pump gas to domestic
are being done differently on the AKK project, TPPs, thereby making electricity more widely
by the application of the transparency, account- 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. ™

The AKK pipeline will be 614 km long (Image: Obor Invest)

P12 www. NEWSBASE .com Week 33 19•August•2020