Page 9 - AfrElec Week 33

AfrElec GAS-FIRED GENERATION AfrElec

NNPC determined to finish AKK

gas pipeline on schedule

NIGERIA 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 Ini-
participants in the pipeline project are taking tiative],” 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 pipeline
planned, he said during an online conference from the current level of 15%. If the company
last week. takes this step, he said, it will not have to borrow
Omotowa did not identify any specific pre- so much to cover the costs of construction.
ventative measures. He did say, though, that NNPC is financing 85% of the $2.8bn project
Nigeria was trying to avoid problems that have with a loan facility from China Export & Credit
derailed similar infrastructure initiatives in the Insurance Corporation (Sinosure). The credit is
past, such as the need to change plans in response due to be repaid over a period of 12 years.
to field conditions, challenges in selecting con- When finished, the AKK pipeline will follow
tractors, failure to define the scope of projects a 614-km route, running northward from the
and unrealistic scheduling. left bank of the Niger River in Kogi State to the
“We believe that from the experience we will capital city of Kano State. It will not only serve as
bring along with other partners in construction the first section of the Trans-Nigeria Gas Pipe-
technologies of the consortium, it will help in line (TNGP) but will also pump gas to domestic
achieving the timeline for completion. Things TPPs, thereby making electricity more widely
are being done differently on the AKK project, available throughout the country.
by the application of the transparency, account- The pipe will have a design capacity of 3.5bn
ability and performance excellence initiative,” he cubic feet per day (99.11mn cubic metres per
was quoted as saying by This Day. day, or about 36.175bn cubic metres per year).
He also stressed that the Nigerian govern- Initially, throughput will amount to 2 bcf per day
ment’s plans for project governance would allow (56.64 mcm per day, or around 20.67 bcm per
for proper oversight. Multiple agencies have year). It will significantly increase the volume of
been appointed to monitor the construction of gas available on Nigeria’s domestic market.™
the AKK line, he said.

Week 33 20•August•2020 www. NEWSBASE .com P9