NNPC, NRC Partner in Materials Haulage for the AKK Pipeline Project

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Management of the Nigerian Railway Corporation (NRC) has disclosed the crucial role the Corporation will play with respect to moving materials for the construction of the 614Km Ajaokuta-Kaduna-Kano gas pipe line (the AKK Project), being handled by the Nigerian National Petroleum Corporation (NNPC).

Nigeria’s oil corporation is currently developing the 614km pipeline that will create a link between the eastern, western, and northern regions of Nigeria.

AKK PIPELINE AIM

The pipeline aims to establish a guaranteed gas supply network between the South and the North of the country at a budgeted cost of $2.8 billion.

[Also Read] AKK Pipeline Project: OILSERV Ltd Commences Massive Project

While inspecting the Lagos-Ibadan standard gauge rail project, the NRC managing director, Engr Fidet Okhiria, said discussions are in the final stages and that a deal will be sealed soon between both Corporations.

“We are engaging them and they are engaging us. They want us to move their materials from Warri to Ajaokuta”, he said.

The AKK Project is being built through a Build-Operate-Transfer, public-private partnership model, whereby the contractor provides 100% of the capital.

The project is expected to be completed within two years.  The pipeline will enhance industrial development and promote local manufacturing through the utilization of the country’s widely available gas resources.

[Also Read] ELPS2, OB3, AKK Gas Pipelines Boost Nigeria’s Domestic Footprint – NNPC

Officials of the NNPC said the project will support the development of petrochemicals, fertilizer, and methanol and other gas-based industries, as well as further increase Nigeria’s revenue generation through the export of natural gas.

Additionally, KKK project will help reduce the large volume of gas flared annually throughout the country, thus minimising environmental impact, the stated.

The project will incorporate three phases, with the intention of providing gas for domestic and commercial electricity generation.

The first phase will be constructed between Ajaokuta and Abuja and run for 200km with an estimated cost of $855 million.

The second phase will comprise a 193km section, to be built between Abuja and Kaduna at a cost of approximately $835 million.

[Also Read] NRC set to begin haulage of petroleum products by rail

Finally, phase three will construct a 221km pipeline between the Kaduna terminal gas station (TGS) and Kano TGS, for an estimated cost of $1.2 billion.

The engineering, procurement and construction (EPC) contract was awarded to OilServe-Oando consortium in April 2018 for phase one of the project, while the EPC contract for phase three was awarded to The Brentex-China Petroleum Pipeline Bureau consortium.

The AKK Pipeline will require the installation of approximately 51,200 steel line, 40-inch diameter pipes, representing a total combined weight of 240,768 tons.

The NNPC has stated that the AKK Pipeline will be fed from existing gas production facilities and provinces; however, the company is yet to clarify from where additional input will be provided.

[Also Read] NNPC at Risk of Bankruptcy Following 2019 Financials – Auditors

Upon completion, the project is expected to inject up to 2.2 billion standard cubic feet of gas per day into the domestic market.

Additionally, the project will facilitate 3,600MW of power generation capacity to the national grid, which will enhance domestic utilization of natural gas, revitalize textile industries and contribute to the country’s overall socioeconomic development.

By Chibisi Ohakah, Abuja

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