The Ajaokuta-Kaduna-Kano (AKK) pipeline is a 614km-long natural gas pipeline currently being developed by the Nigerian National Petroleum Corporation (NNPC).
It is set to be laid between Ajaokuta and Kano in Nigeria and forms phase one of the Trans-Nigeria Gas Pipeline (TNGP) project.
The pipeline project is being implemented via a build and transfer (BT) public-private partnership (PPP) model, which involves the contractor providing 100% of the funding.
The pipeline will cost an estimated $2.8bn and ground breaking ceremony is scheduled for tuesday 30th June.
The project will result in the establishment of a connecting pipeline network between the eastern, western and northern regions of Nigeria.
It also aims to create a steady and guaranteed gas supply network between the northern and southern parts of Nigeria by utilising the country’s widely available gas resources.
NNPC originally announced tenders for the development of the AKK pipeline in July 2013.
A project proposal was submitted to the Infrastructure Concession Regulatory Commission (ICRC) in June 2017.
The PPP compliance certificate was issued in July 2017 along with the approval of the feasibility study.
The Federal Executive Council (FEC) granted approval for the project in December 2017.
The project will be executed in three phases, with phase one covering the construction of a 200km-long segment between Ajaokuta and Abuja Terminal Gas Station at a cost of $855m.
Phase two will comprise a 193km-long section to be built between Abuja and Kaduna at a cost of approximately $835m.
Phase three will involve the construction of a 221km-long section between the Kaduna terminal gas station (TGS) and Kano TGS. This section will cost an estimated $1.2bn to complete.
The project will eventually reach North Africa in subsequent phases.
What will AKK pipeline project do for Nigeria? Great and wonderful things. It will create steady and guaranteed gas supply network between the North and South, and will enhance power generation capacity.
The industrial sector will be strengthened, local usage of gas will be promoted and increased, and the country’s revenue generation boosted through export of natural gas.
Nigeria is ranked the 7th most endowed natural gas country in the world. She sits on about 180 trillion cubic feet of natural gas deposits, which can be utilized as gas to power, gas to petrochemicals, liquefied natural gas (LNG), liquefied petroleum gas (LPG), compressed natural gas (CNG), among others.
Over the years, Nigeria has exploited its oil resources more, to the detriment of gas, which incidentally fetches more revenue, but is also more expensive to prospect.
While presenting his performance report to the Federal Executive Council recently, Minister of State for Petroleum, Timipre Sylva, spoke extensively about CNG, and what it can do for Nigeria as an alternative to petrol.
He listed the challenges of the oil and gas sector to include; under-recovery, crude theft, insecurity, high cost of production, very low LPG penetration, refineries shutdown, long contracting cycle, among others.
Sylva stressed that the oil and gas sector remains critical to the Nigerian economy, even as we strive to diversify. He identified CNG and LPG penetration as priority.
Said the Minister: “The switch to CNG will help reduce the burden of petrol subsidy on the finances of the country, and government should encourage Nigerians to use CNG as fuel for transportation.”
CNG began as a pilot project in the country in 2006, but target for conversion workshops was not met till 2015. About 4,000 vehicles run on CNG in Benin, Edo State, and it’s about 50% cheaper than petrol.
Vehicles running on CNG, statistics show, save about N1,143 daily, compared with petrol. This amounts to over N30, 000 monthly. The cost of converting the car can thus be recovered within six months.
Gas is cleaner energy, cheaper than petrol, and more friendly to the environment. Global warming will, therefore, be slowed down.
More than 175,000 vehicles run on CNG in America today, and 23 million worldwide. Nigeria will join the number, and boost productivity.