The Nigerian National Petroleum Corporation (NNPC) on Friday said it has executed contracts for the engineering, procurement, construction, commissioning and financing for Lots 1&3 of the 40inch by 614km Ajaokuta – Kaduna – Kano gas pipeline and stations with a consortium of indigenous and Chinese companies under a 100 percent contractor financing model.
This was disclosed by Ndu Ughamadu,spokes person of the Corporation that the AKK Gas Pipeline and Stations Project comprised Lots 1 and 3, and measured 40inch x 614km.
According to him, the agreement, which is 100 per cent contractor-financing model, has been signed with a consortium of indigenous and Chinese companies.
“Under the terms of contract, Lot 1, with total length of 40 inch x 200km stretching from Ajaokuta to Abuja Terminal Gas Station (TGS), was awarded to the OilServe/Oando Consortium.
“Lot 3, which runs from Kaduna TGS to Kano TGS with a total length of 40inch x 221km, was awarded to the Brentex/China Petroleum Pipeline Bureau Consortium.
“It is envisaged that contract agreement for Lot 3 which covers 40inch x 193km, stretching from Abuja to Kaduna, will be executed in the weeks ahead,” he said.
According to the official, the AKK Project is a section of the Trans-Nigerian Gas Pipeline under the Gas Infrastructure Blueprint designed to enable industrialisation of the Eastern and Northern parts of Nigeria.
He added that the project would enable connectivity between the East, West and North, currently non-existent.
The GMD noted that the AKK section has suffered setbacks due to scarce resources for government to fully finance the project, hence the adoption of the contractor financing model.
“The two other pipelines, the OB3 & ELPs 2 in the Gas Master Plan blue print, are currently at various stages of completion and are being financed directly by the Federal Government,’’ he said
The spokesman quoted the Chairman of Oilserve/Oando Consortium, Mr Emeka Okwuosa, as lauding the Federal Government and the NNPC for providing the opportunities for indigenous companies to flourish in the oil and gas industry.
According to the NNPC official, Okwuosa said that award of Lot 1 of the AKK Project to an indigenous consortium showed government’s determination to encourage local content philosophy.