‘Work on Ajaokuta-Kaduna-Kano gas pipeline to begin soon with 15% equity funding’
President okays Osinbajo work group to reform energy sector
With a 15 per cent equity funding already paid, the presidency yesterday hinted that the construction of the Ajaokuta-Kaduna-Kano gas pipeline would commence soon.
The project is a 614 kilometre-long natural gas pipeline currently being developed by the Nigerian National Petroleum Corporation (NNPC) and forms phase one of the Trans-Nigeria Gas Pipeline (TNGP) project.
The Senior Special Assistant on Media and Publicity to the President, Garba Shehu, yesterday explained that the project is itself a section of an ambitious pipeline to supply gas to Europe through the proposed Trans Sahara Gas Pipeline (TSGO) and Nigeria-Morocco Gas Pipelines.
The Federal Executive Council (FEC) presided over by President Mohammadu Buhari last week took step to fast-track the closure of all outstanding issues relating to the financing and the issuance of a Sovereign Guarantee (SG) to support debt service and China Export and Credit Insurance Corporation, SINOSURE’s policy to underwrite up to a maximum of 85 per cent of the project cost, which is now reduced to $2,591,849,049.19.
Meanwhile, President Muhammadu Buhari has approved the composition of a Power Sector Reform Coordination Working Group under the leadership of Vice President Yemi Osinbajo to reposition the energy sector by consolidating the efforts of the federal and state governments.
In a statement, Kaduna State Governor and chairman of the committee set up by the National Economic Council (NEC) on power sector reforms and distribution company ownership (DISCOs), Nasir El-Rufai, said that the new working group would incorporate ongoing efforts of his committee and ensure that all power sector initiatives are on same level.