Page 11 - AfrElec Week 10

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GAS-FIRED GENERATION
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will be sufficient to repay the facility,” she was quoted as saying by Reuters. “This project is one of the cardinal policies of this administration and it is very strategic to national development.
NNPC has said that most of the volumes pumped through the AKK link will consist of associated gas from Nigerian oilfields – namely, from seven development projects that are already underway.
The project aims to help the country reduce emissions by eliminating the perceived need to flare associated gas.
When finished, the AKK link will follow a 614-km route, running northward from the left bank of the Niger River in Kogi State to the cap- ital city of Kano State. It is meant to serve as the
first section of the Trans-Nigeria Gas Pipeline (TNGP) and will deliver gas to domestic TPPs. As a result, it will help bring Nigeria’s total gen- erating capacity above the 10,000MW mark and make electricity available to a larger share of the population, the company said.
The pipeline has a design capacity of 3.5bn cubic feet (99.11mn cubic metres) per day, or about 36.175bn cubic metres per year. Its initial throughput will amount to 2 bcf (56.64 mcm) per day, or around 20.67 bcm per year.
NNPC hopes to begin building the AKK line before the end of 2020. It has already chosen a consortium formed by Chinese and local com- panies to act as its contractor for work on the pipe and compressor stations.™
South African companies urged to seek LNG- related contracts in Mozambique
SOUTH AFRICA
SEVERAL South African businesspeople said during the Africa Gas Forum in Cape Town last week that their country had the potential to benefit from the development of natural gas resources in Mozambique.
Paul Eardley-Taylor, the head of client cover- age for oil and gas in southern Africa at Standard Bank, said at the conference that efforts to use Mozambican fields as resource bases for inte- grated gas production, liquefaction and export projects represented a huge opportunity for South African companies.
He noted that international oil companies (IOCs) were planning to build three LNG com- plexes with a production capacity of 3mn tonnes per year (tpy).
Standard Bank believes that the three projects unveiled thus far will cost $65bn, Eardley-Taylor stated. As other schemes reach the final invest- ment decision (FID) stage, total foreign direct investment (FDI) commitments could reach $128bn, or “probably more,” he said.
Greg Nichollas, a project development man- ager at Lesedi Nuclear Services, said that gas
development in Mozambique might create many openings for South Africa’s construction compa- nies, which have been “in the doldrums.”
He said he had “no doubt” that South African firms should seek a place “right at the forefront” as the two LNG consortia that have already reached FID stage then award construction and implementation contracts.
There are plenty of “development opportuni- ties for people who are bold,” he said, according to West Cape News. IOCs are looking to build a number of onshore facilities on the Afungi peninsula, but the area lacks the infrastructure needed to accommodate them and their con- tractors, he said. Under these conditions, South African companies ought to showcase their capabilities with respect to the construction of roads, bridges and other ancillary infrastructure, he said.
Nichollas stressed, though, that South Afri- can construction firms would have to do more than simply offer access to a large pool of lowend labour. “We need to supply quality skills and develop a manufacturing industry in South
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