NNPC: $2.8bn AKK Gas Pipeline Project to Be Inaugurated in Q3, 2023

The $2.8 billion Ajaokuta-Kaduna-Kano (AKK) gas pipeline which will support the generation of about 3,600mw of power is set for completion in the third quarter of 2023, the Nigerian National Petroleum Company Limited (NNPC) said yesterday.

The scope of work of the project includes the construction of a 40× 614 kilometre linear section from Ajaokuta in Kogi state, traversing the Federal Capital Territory (FCT), Niger and Kaduna states,  terminating in Kano as well as a 24 × 15km spur line to Abuja terminal gas station.

The pipeline has the capacity to transport 2 billion Standard Cubic Feet (SCF) of natural gas per day to three proposed Independent Power Plants (IPPs) in Abuja, Kaduna, Kano, and other gas-based industries as well as other identified and proposed commercial off-takers along the entire pipeline route.

The Group Chief Executive Officer of the National Oil Company (NOC), Mallam Mele Kyari, who spoke when he took journalists on an official tour of one of the sites of the project in Ahoko area of Kogi State, disclosed that so far $1.1 billion had been spent on the project estimated to cost $2.8 billion.

He also disclosed that the project is being fully funded by NNPC with no third party support, explaining that the project is being delivered in phases, with welding now 70 per cent completed.

“This is one of the most massive projects that we run in the company. It’s of immense value to our country and to its socio-economic growth. We know that this is a must-deliver project. This project has not stopped for one day, we have continued to fund it despite the fact we do not have third party financing.

“We have so far spent over $1.1 billion on this project from our cash flow. We have different companies, commercial companies, inter-company loans within our company. These companies can fund these projects.

“ So, we do not need any support. As we speak now, we don’t owe a dollar to our contractors. We pay all their invoices, we are hopeful that we will deliver this project,” Kyari stated.

Overall engineering design for the linear section of the two segments of the project already stands at 93.48 per cent, while overall procurement for the linear section for the two segments is at 88 per cent.

According to the NNPC, 94 per cent of the total line pipes have been manufactured and  90 per cent already in-country, while 400km of the linear section/mainline welding, representing 68 per cent of Right of Way (ROW) from Ajaokuta in Kogi state to Kano.

The procurement process was endorsed by the Bureau for Public Procurement (BPP) having complied with all regulatory requirements before the approval by the Federal Executive Council (FEC) in 2018.

NNPC, it was learnt , further renegotiated the project cost downwards to $2.5 billion in 2019 with the attendant savings of $300 million, which culminated in the final approval by FEC.

The 3,650 expected megawatts are broken down into Abuja (1,350) Kaduna (950) and Kano (1,350)

“By the third quarter of this year we will complete the entire welding of this. What this means is that we can energise this line by end of third quarter of this year.

“We are going to commence the construction of the Kaduna, Abuja Power plants in earnest. It’s a cumulative thing gradually we will deal up to that capacity. To naysayers, we will shame them , project will be delivered, we are not scared of their comments,”  Kyari added.

Speaking further, Kyari lamented the loss of some workers due to security challenges in some locations where work on the project is ongoing.

While offering his condolences to the families of the workers who lost their lives, he expressed gratitude to security agencies for increasing security and ensuring security of the workers.

“There are challenges, security issues. We have lost men and we are so sorry to their families. We continue to share their grief. Despite these, we have gotten massive support from our government security agencies, the Nigerian army, Department of State Service, DSS and others.

“They are making sure that our workers work safely and that we are able to continue this project uninterrupted. We are grateful to this team and we assure Nigerians that this project is different and will be delivered,” he added

Giving a tour of the site, Project Manager, Oilserv Limited Pipelines and Facilities, Steve Nnorom disclosed that the company had done about 222 kilometres welding work with about 27km remaining for completion.

“We have completed about 73 per cent of our mainline wielding works. We have done 222 kilometres, we have about 27 km of welding work to complete. Our target is that all works will be going on at different spreads.

“We are progressing gradually. We have terrain challenges especially for the location we are in now, there’s a steep. The NNPC is paying all our bills and we are not being owed,”  he stressed.