President Buhari flags off AKK Gas pipeline
…as Gov. Bello Commends the president’s commitment toward economic growth of the nation.
President Muhammadu Buhari on Tuesday flagged off the construction of the Ajaokuta – Kaduna – Kano Gas pipeline which upon completion would enable the injection of 2.2bscf/d of gas into the domestic market and facilitate additional power generation capacity of 3,600MW.
The Flag off which was simultaneously conducted by Governors of Kogi, Yahaya Bello, and his Kaduna states counterpart, Nasiru El-rufai had the President, Vice President and other dignitaries joined through virtual coverage.
Governor Bello while addressing the press after the ground breaking ceremony noted that the project was yet another of President Buhari industrial revolution and economic revitalization plan.
He pointed out that the project was very important to the North as it would reduce the level of youth unemployment in the region.
Governor Bello boasted that Kogi State Government in 2018 strategically trained its youths in various vocational skills being aware that certain project and many others would get them gainfully engaged.
The Governor affirmed that no amount of industrial or economic revolution could take place in the country without stable power noting that such was why the president and its administration remained keen of improving the power sector.
Governor Bello commended the president, alongside the Federal Executive Council for taking such giant step and for awarding the project to an indigenous Engineering company, while he also thanked the NNPC GMD and its Management for facilitating the drive.
In his address Group Managing Director, NNPC, Mele Kyari 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 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.
The AKK gas pipeline project would facilitate the development of three base independent power plants (IPPS) in Abuja, Kaduna and Kano with capacities of 1350MW, 900MW and 1350 MW respectively.
It is believed that the completion of the pipeline project would further stir the development of Gas based industries.
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