The Nigerian government will start the construction of the Achokuta-Kaduna-Kano natural gas pipeline project of the National Petroleum Corporation of Nigeria at a cost of $2.8 billion.

Dr. Kennie Obateru, Group General Manager of the Ministry of Public Affairs of the National Petroleum Corporation of Nigeria, said that the 614-kilometer pipeline is scheduled to be completed within a 24-month schedule and is the first phase of a 1,300-kilometer natural gas pipeline project across Nigeria.

The Trans-Nigeria Natural Gas Pipeline Project is part of the 4,401-kilometer Trans-Saharan Natural Gas Pipeline, which will export natural gas to European customers.

The Achokuta-Kaduna-Kano natural gas pipeline project will start from Ajaokuta in Kogi State, cross Abuja, Niger, Kaduna, and finally reach Kano. It is expected to promote the use of natural gas in Nigeria and promote economic development.

The Nigerian National Petroleum Corporation said the project will release 2.2 billion cubic feet of natural gas for the domestic market and support the addition of 3,600 MW of electricity to the national grid.

About 85% of the capital cost of the project will be financed by Industrial and Commercial Bank of China, Bank of China and China Infrastructure Bank. China Export Credit Insurance Corporation (ECA) will provide insurance. The remaining 15% of the project cost plan is provided by contractors including the Oilserve/Oando consortium and the Brentex/China Petroleum Pipeline Bureau consortium.

Achokuta-Kaduna-Kano gas pipeline project

The Achokuta-Kaduna-Kano Natural Gas Pipeline Project will be carried out in three phases under a public-private partnership under the construction and transfer model. The first phase covered an area of about 200 kilometers between Ajaokuta and Abuja. The plan costs about $855 million, and a consortium of OilServe and Oando PLC is implemented under an engineering, procurement, and construction (EPC) contract.

The second stage is from Abuja gas station to Kaduna gas station, the distance is 193 kilometers, and the budget is 835 million US dollars. The third stage is about 221 kilometers from Kaduna, Kano and a budget of 1.2 billion USD.

Expectations for the project

After the completion of the AKK natural gas pipeline project, it is expected to promote the use of domestic natural gas and promote the social and economic development of Nigeria. It will release approximately 2.2 billion cubic feet of natural gas for the domestic market, support the addition of 3600 megawatts of electricity to the national grid, and help revitalize the textile industry, with more than 3 million jobs in parts of the country alone.

In addition, it is expected to support the development of petrochemicals, chemical fertilizers, methanol and other gas-based industries, thereby creating jobs and promoting balanced economic growth. Editor/Huang Lijun