In order to accommodate future gas demands and supplies, the existing gas pipeline network in Nigeria needs to be expanded. This would involve the installation of all required facilities such as pipeline, compressor stations and all other related equipment. These have led the NNPC to conceive the Trans Nigeria Gas Pipeline Project (TNGP), the East-North network which starts from Qua IboeTerminal (QIT) to Cawthorne Channel in Rivers, traversing Obigbo-Umuahia-Enugu-
Ajaokuta and finally the Ajaokuta-Abuja-Kaduna-Kano network.
These main elements of the TNGP Project shall be realized in four Engineering, Procurement, and Construction (“EPC”) Contract Packages:
- One Contract Package for the Early Gas Phase (“EGP”) Pipeline
- One Contract Package for Compressor Station and Supervisory Control and Data Acquisition (“SCADA”) of the whole system
- One Contract Package for the Obigbo-Umuahia-Ajaokuta (“OUA”) Pipeline
- One Contract Package for the Ajaokuta-Kaduna-Kano (“AKK”) Pipeline
The AKK Gas Pipeline Project constitutes Phase 1 of the TNGP Project. It originates from Ajaokuta, traversing Abuja, Kaduna and terminating at a terminal gas station in Kano. The proposed pipeline will be supplied with gas sourced from various gas gathering projects.
The main components of the AKK section can be divided into:
- Pipe line sections and sub-sections, special zones and crossings;
- Terminal Gas Stations
- Block Valve Stations
- Pigging Stations
- Metering Stations
- Ancillary Installations, Temporary Installations and Services.
The pipeline sections include a 187-kilometre pipeline from Ajaokuta to Abuja, 193 kilometres pipeline from Abuja to Kaduna, 65 kilometres from Kaduna to Zaria, and 238 kilometres from Zaria to Kano. The gas line, which is expected to serve existing NNPC customers along its route, will provide gas to cement firms, compressed natural gas users, power generation plants, and other industrial concerns within the northern axis of the country.
The 614 kilometer 40-inch gas pipeline Ajaokuta – Kaduna – Kano (AKK) Pipeline Project is estimated to cost about 2.8 billion dollars. The project will be delivered through a Build and Transfer PPP model with 100 per cent Contractor Financing. The Federal Government and NNPC are expected to reach common terms with the contractors on how they will be repaid over a 15-year period. Although the loan repayment is expected from revenue accruing from both existing and the expanding pipeline network, the NNPC and the Federal Government are expected to meet financial gaps and guarantee the return on net investment.
The pipeline EPC contract for the project which has been divided into 3 lots; Ajaokuta – Abuja, Abuja – Kaduna, and Kaduna – Kano was recently awarded to the three most competitive tenderers of the negotiated lump sum price. It marks the beginning of the implementation of the first phase of the gas master plan that was approved by the Federal Government in 2016.