NNPC starts work on construction of Kano-Ajaokuta gas pipeline
The process for the construction of 650 kilometres northern gas pipeline that would run from Ajaokuta in Kogi State to Kano has begun, the Nigerian National Petroleum Corporation (NNPC) has disclosed.
The Group Managing Director of the NNPC, Dr. Maikanti Baru, who stated this yesterday in Abuja at the 2017 edition of the annual Society of Petroleum Engineers (SPE) Oloibiri Lecture Series and Energy Forum (OLEF), explained that the corporation has tendered and was expecting contractor financiers to take up the construction of the project.
Baru stated that the tender processes for the construction of the line would be concluded by the end of the second quarter of 2017, after which preferred bids who would recoup their investments from the operations of the line ought to be announced.
The 2017 OLEF had as its theme “Domestic Gas Utilisation in Nigeria: From Producers to Users.” The President of the Nigerian Gas Association (NGA), Mr. Dada Thomas was the lead speaker.
Baru said the corporation would improve efforts on the construction of Ajaokuta to Kano gas line, adding that it would soon complete the 123 kilometres East-West Obiafo/Obirikom to Oben (OB3) pipeline and looping of the Escravos-Lagos gas pipeline from Warri to Lagos.
“The Ajaokuta-Abuja-Kaduna-Kano pipeline is currently on tender. This project would soon be awarded under a contractor-financing scheme. The pipeline is a typical example of public private partnership and it is being tendered and would be funded by partners who would recover their investments from the operations of the pipeline,” said Baru.
The line from its project schedule is expected to run 187 kilometres from Ajaokuta to Abuja, 193 kilometres from Abuja to Kaduna, 65 kilometres from Kaduna to Zaria and then the rest from Zaria to Kano.
Baru also disclosed that if not quickly addressed, the current operational challenges experienced in the nation’s power sector could limit gas generation companies (Gencos) from increasing their output to 6,000 megawatts (MW) of electricity by the second quarter of 2017.
According to him, while the Gencos would be able to increase their outputs due to improved gas supplies to them, however, the operational inadequacies of the Transmission Company of Nigeria (TCN) and electricity distribution companies (Discos) could prevent the nation from achieving this.
He said: “As of today, there is enough gas to generate about 4,800MW and 6,000MW by Q2 2017 based on our gas supply plan, but the power sector is currently struggling to evacuate 4,500MW power due to the incessant rejection of allocated load and transmission line constraints by the Discos.”