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Oando celebrates construction start of Nigerian gas pipeline project

1st July 2020

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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JSE-listed Oando attended as a consortium partner at the flag-off ceremony for the construction of the $2.8-billion, 40-inch and 614 km Ajaokuta-Kaduna-Kano (KKK) gas pipeline project, in Nigeria, presided over by President Muhammadu Buhari on June 30.

The AKK pipeline project, championed by two consortia comprising select indigenous and international companies, started in 2013 with the announcement for tenders issued by the Nigerian National Petroleum Corporation (NNPC).

In April 2018, Oando announced that following an extensive due diligence and bid process, the Oilserv-Oando consortium was awarded the engineering, procurement and construction (EPC) mandate for Segment 1 of the AKK pipeline project by the NNPC.

The project, which will originate from Ajaokuta in Kogi state, traversing Abuja, Niger, Kaduna states, finally terminating in Kano state, is the largest gas pipeline project in Nigeria’s history.

The project, which is expected to be completed within a 24-month timeline, is a 614 km section of the Trans-Nigeria Gas Pipeline (TNGP) with the capacity to transport about 2.2-billion cubic feet of gas daily.

It is expected to boost domestic use of natural gas for Nigeria’s socioeconomic development when completed.

The project will support the addition of 3 600 MW of power to the national grid and connect energy demand from the northern part of Nigeria with supply from the South, thereby enabling power-starved communities across the northern region to have greater access to electricity.

Moreover, it is anticipated to provide stranded commercial and industrial customers with a cleaner, more efficient source of self-generated energy.

The project is slated to enhance uptime at industrial clusters, enabling heavy duty plants in northern parts of the country to return to internationally competitive operations.

Lastly, it is also expected to significantly curb gas flaring in the Niger Delta and guarantee better air quality in the oil-producing region while preserving the ecosystem.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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