In 2008, the Federal Government approved the Nigerian Gas Master Plan (NGMP) to accelerate the development of gas pipeline infrastructure for domestic and export markets with the intent of maximising the effect of gas in the domestic economy, ensuring long – term energy security while optimising the country’s export gas capability. To this end the Federal Government through the Nigerian National Petroleum Corporation (NNPC) put up tenders for the construction of the Ajaokuta- Kaduna-Kano Gas pipeline.
At a recent federal executive council (FEC) meeting, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, got the FEC to approve the 40 inches pipeline contract.
Investigation by Nigeria’s Oil & Gas has revealed that the $2.8billion contract was awarded to a Chinese company-China Petroleum Group Engineering Co., Ltd (CPGE).
The company disclosed the news in its project bid announcement to the Chinese authorities where it said that its subsidiary- China Petroleum Pipeline Bureau Engineering Co., Ltd. and Brentex Petroleum Services Limited (Brentex) won the contract by the NNPC.
The company said the main package of the contract including: 40-inch pipeline 221 km, 2 station and 7 valve room and its ancillary facilities, while the project duration to the final signing Agreement prevail.
It also stated that, the consortium will assume the design, procurement, construction and transportation of the Kaduna-Kano pipeline Line and training work.