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Longest Gas Pipeline in Nigeria Gets the Green Light for Construction

Longest Gas Pipeline in Nigeria Gets the Green Light for Construction (Michael Wick / Shutterstock)

The 614-km, 40 inch Ajaokuta - Kano Gas Pipeline (AKK), the single biggest gas pipeline in the history of oil and gas operations in Nigeria, will now go forward with $ 2.38 bn financing secured by the China National Petroleum Corporation.

Groundbreaking is supposed to occur in October: “We want to maximize the construction work before the end of the year. We are hoping for the quick resolution of the financing agreements so that we will kick-start the project in October when the dry season begins.”

While 85 per cent of the money is expected to be provided by the financiers, which include Industrial and Commercial Bank of China, Bank of China, and Infrastructure Bank of China with Sinosure, China’s Export Credit Agency providing insurance cover, the remaining 15 per cent will be provided by the contractors, which include Oilserve/Oando consortium, as well as Brentex/China Petroleum Pipeline Bureau consortium.

The AKK pipeline would enable connectivity between the East, West and North. It would also enable gas supply and utilization to key commercial centers in the northern corridor of Nigeria.

Speaking on behalf of over six CNPC subsidiaries at the meeting, the Assistant President and board member of the CNPC, Mr Wang Shihong, said his company placed a high premium on the AKK project, describing it as the beginning of several collaborations between the two corporations.

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