Gas (AKK) pipeline project within budgetary allocation and
specifications.
Speaking at the virtual flag-off ceremony of the project at the
Ajaokuta, Kogi State, and Rigachikun, Kaduna State camp sites
simultaneously, President Buhari said the project was very dear to the
people of Nigeria and must succeed.
The President, therefore, directed the NNPC and partners to remain
focused, noting that the AKK project is part of the delivery of the
present administration’s Next Level Agenda for sustainable development,
enhancement of economic prosperity, and increase of the country’s
infrastructure assets.
Governors Yahaya Bello of Kogi State and Nasir El-Rufai of Kaduna
physically flagged off the commencement of works at Ajaokuta and
Rigachikun sites, while the President watched remotely via
video-conference from the Council Chamber in Abuja.
President Buhari said: ”we promised the Nation that we will expand the
critical gas infrastructure in the country to promote the use of gas in
the domestic market.
”These include the Escravos to Lagos Pipeline System – 2 (ELPS-2),
Obiafu to Obrikom (OB3) pipeline, and AKK.
”These projects are fundamental to our desire to industrialize and
energize the entrepreneurial spirit that is ever-present in our
population.”
Enumerating the benefits of the project, billed to be completed in two
years, the President said it will provide gas for generation of power
and for gas-based industries which would facilitate the development of
new industries.
It will also ensure the revival of moribund industries along with
transit towns in Kogi State, Abuja (FCT), Niger State, Kaduna State and
Kano State, he said, adding that the cascading effect and impact of the
AKK, when operational, will be immeasurable.
His words: ”It has significant job creation potential both direct and
indirect while fostering the development and utilization of local skills
and manpower, technology transfer and promotion of local
manufacturing.”
President Buhari announced that Nigeria had learned invaluable lessons
from the global COVID-19 pandemic and some oil-rich countries that have
used their crude as a pathway to economic and industrial
diversification.
On COVID-19, the President said the pandemic had further underscored the
drive of his administration for export substitution initiatives and
projects that promote local manufacturing.
On diversification, the President said: ”Gulf countries that have
similar levels of gas reserves as Nigeria, have a strategy centered
around gas-industrialization as their foundation towards export
diversification. This has to be our guiding principle as we seek to
attract investment and create opportunities for our people.”
The President also used the occasion to challenge the private sector to
lead the charge in maximizing the nation’s gas resources.
According to him, the private sector can create a petrochemical hub that
will resurrect the manufacturing industry and put the nation on the path
to increased self-sufficiency.
”As the world evolves, we owe our people the responsibility to prepare
them for what the future holds. We, therefore, must be bold and fearless
and can no longer be incremental in our approach.
”Time is short, and our people’s zeal is strong and palpable.
Infrastructure development although long, tedious, and complex remains a
cardinal objective of our Administration’s drive towards ensuring a
stable, sustainable, and more prosperous future for our citizenry.
”Today marks an important chapter in the history of our great Nation.
It marks the day when our domestic natural gas pipeline networks; from
Obiafu in Rivers State, Escravos in Delta State and Lekki in Lagos
State, are being connected through Kaduna to the Kano States thereby
enhancing national energy security, creating balanced development, and
further integrating our nation,” he said.
The President commended the Government of the People’s Republic of
China; the financiers the Bank of China and SINOSURE; and the two EPC
Contractors (Brentex/China Petroleum Pipeline Bureau-CPP Consortia and
Oilserve/China First Highway Engineering Company-CFHEC Consortia) for
their support to deliver the important project.
He also congratulated the Ministry of Petroleum Resources, NNPC, and all
relevant stakeholders on the historic and epoch-making occasion,
commending the resilience of the team to deliver on the project despite
the COVID-19 pandemic.
The President appealed to Governors of Kogi, Niger, Kaduna, and the Kano
States as well as the Minister of the Federal Capital Territory to
provide the enabling environment and support for the project.
In his remarks, Mallam Mele Kyari, Group Managing Director, NNPC,
explained that the AKK gas pipeline project, which is part of the
Trans-Nigeria gas pipeline project, involves the establishment of a
connecting gas pipeline network that will integrate the Northern region
of the country with the Niger Delta, Eastern and Western regions of the
Country.
He said the EPC contract for the 614km AKK gas pipeline project was
awarded at a total contract sum of US$2.592 billion to Messrs. Oilserv
Plc/China First Highway Engineering Company (Oilserv/CFHEC Consortium)
for the first segment covering 303km.
According to the GMD NNPC, Messrs. Brentex Petroleum Services/China
Petroleum Pipeline Bureau (Brentex/CPP Consortium) got the contract for
the second segment covering 311km under a debt-equity financing model
with a loan from Bank of China and SINOSURE, to be repaid through the
pipeline transmission tariff and supported by a sovereign guarantee.
”We are confident that the EPC contractors will deliver the project on
time, within budget and to quality/specifications,” he said.
Kyari added that upon completion, the project would enable the injection
of 2.2bscf/d of gas into the domestic market and facilitate an
additional power generation capacity of 3,600MW.