The Nigerian National Petroleum Corporation NNPC) said arrangements were being concluded for the historic groundbreaking of the 40inch x 614km Ajaokuta – Kaduna – Kano, (AKK), gas pipeline and stations in the weeks ahead.
The corporation said following last week’s successful execution of contract agreements for the engineering, procurement, construction, commissioning and financing for Lots 1&3 of the over $2.8billion trans-Nigeria gas pipeline project, measures had been activated for the flag-off of what has been described as the single biggest gas pipeline project in the history of oil & gas operation in Nigeria.
Upon completion, 24 months from now, the AKK gas pipeline would enable connectivity between the East, West and North, currently non-existent.
It would also enable gas supply and utilization to key commercial centres in the Northern corridor of Nigeria with the attendant positive spin-off on power generation and industrial growth.
Providing details of the contract awarded to consortium of indigenous and Chinese entities under a 100 per cent contractor financing model, the NNPC said Lot 1 with total length of 40inch x 200km stretching from Ajaokuta to Abuja Terminal Gas Station awarded to the OilServe/Oando Consortium had a contract value of about $855million.
Lot 2 whose contract agreement is yet to be executed covers 40inch x 193km, stretching from Abuja to Kaduna with contract value of about $835 million.
The NNPC said Lot 3 which runs from Kaduna Terminal Gas Station (TGS) to Kano TGS with total length of 40inch x 221km was awarded to the Brentex/China Petroleum Pipeline Bureau (CPP) Consortium under a contract value of about $1.2 billion.
The above brought the total value of the entire project to over $2.8billion as approved by the Federal Executive Council at its 46th meeting on 13th December, 2017