As earlier proposed and projected, the Nigeria National Petroleum Corporation (NNPC) has awarded a contract of US$2.8 billion for engineering, procurement, construction, commissioning and financing of 614km Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and Stations.
The process for the award of the AKK Project began when NNPC advertised it in major national newspapers for companies that are interested in the project. After a technical and commercial evaluation process, the Federal Executive Council approved the contract valued at over $2.8 billion.
The AKK Gas Pipeline and Stations Project comprised Lots 1 and 3, measured 40inch x 614km. The agreement, which is 100 per cent contractor-financing model, has been signed with a consortium of indigenous and Chinese companies. Under the terms of contract, Lot 1, with total length of 40 inch x 200km stretching from Ajaokuta to Abuja Terminal Gas Station (TGS), was awarded to the OilServe/Oando Consortium. Lot 3, which runs from Kaduna TGS to Kano TGS with a total length of 40inch x 221km, was awarded to the Brentex/China Petroleum Pipeline Bureau Consortium. It is envisaged that contract agreement for Lot 3 which covers 40inch x 193km, stretching from Abuja to Kaduna, will be executed soon.
The AKK Project is a section of the Trans-Nigerian Gas Pipeline under the Gas Infrastructure Blueprint designed to enable industrialisation of the Eastern and Northern parts of Nigeria. He added that the project would enable connectivity between the East, West and North, currently non-existent.
Ndu Ughamadu NNPC spokesman noted that the AKK section had suffered setbacks due to scarce resources, hence, the adoption of the contractor-financing model. The NNPC spokesman posited that “The two other pipelines, the OB3 and ELPs 2 in the Gas Master Plan Blueprint, are currently at various stages of completion and financed directly by the Federal Government.”
Ughamadu stated further that the Chairman of Oilserve/Oando Consortium, Emeka Okwuosa, as lauding the Federal Government and the NNPC for providing the opportunities for indigenous companies to flourish in the oil and gas industry.
Okwuosa was delighted that award of Lot 1 of the AKK Project to an indigenous consortium showed government’s determination to encourage local content philosophy.