Nigeria’s President Muhammadu Buhari has launched construction works on NNPC’s $2.59 billion natural gas pipeline,
Once complete, the 614-kilometer Ajaokuta-Kaduna-Kano (AKK) gas pipeline project will transport 2.2 billion cubic feet per day (Bcf/d) of gas to the domestic market.
The infrastructure, which will enable Nigeria to produce gas instead of flaring it, will cross seven major rivers and ten major roads. It will feed industry and power generation, with three new gas-fired plants set to produce 3,600 megawatts of electricity.
“We promised the nation that we will expand the key 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 – Obrikom – Oben (OB3) pipeline, and the AKK,” Buhari said.
“I therefore directed NNPC to ensure that these critical projects are completed on time, within budget and specification,” he added.
NNPC said the financing for the project is expected to close by August, but that the state oil firm is utilizing the equity contribution to commence the execution of the project. That’s because it wants to “recover lost time and put the project back on track,” it said in a statement.
It’s unclear when the contractors are expected to deliver the pipeline, some believe it would be complete within 24 months.
Source: Kallanish Energy