Tuesday, 30 June 2020

Keynote address by NNPC GMD, Mele Kyari, at the flag-off ceremony of the construction of the 614km AKK Pipeline Gas Project

Nigeria National Petroleum Corporation GMD, Mele Kyari,  delivered his Keynote address at the flag-off ceremony of the construction of the 614km Ajaokuta-Kaduna-Kano (AKK) gas pipeline Project, although President Buhari wasn't present in person, but he was represented by Kogi state governor, Yahaya Bello

Mele Kyari;

It is with great honor and privilege that I welcome your Excellency, President Muhammadu Buhari, Commander-in-Chief if they Armed Forces of the Federal Republic of Nigeria, to this historic flag-off of the construction phase of the AKK Gas Pipeline Project.
This event would not have been possible without the full and unflinching support of His Excellency, Mr. President. We thank you Sir.
The current Administration under the leadership of His Excellency, President Buhari has made it a priority to ensure revenues from oil and gas resources are utilized to support the emergence and growth of other non-oil sectors of the economy.

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NNPC is this transitioning towards becoming an Integrated Energy Company to support His Excellency, Mr. President’s economic diversification efforts. One of such efforts is the expansion of the Corporation’s domestic gas footprint with the delivery of the Trans-Nigeria Pipeline Project which includes the Escravos to Lagos Pipeline System (ELPS) 2, the Obiafu-Obrikom-Oben (OB3) gas pipeline and the AKK Project.

Construction of third critical enablers is in line with NNPC’s responsibility of implementing the National Gas Infrastructure Bluefin which is part of the Nigeria Gad Master Plan. The Master plan is meant to leverage on the Nation’s huge natural gas reserve base to stimulate unprecedented economic growth and enable Nigeria’s migration from the current mono-economy into a diversified economy.

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The AKK project ,which is part of the Trans-Nigeria gas pipeline project, involved the establishment of a connecting gas pipeline network that will integrate the Northern region of the country with the Niger Delta, Eastern and Western regions of the Country.

The EPC contract for the 614km Gas Pipeline Project was awarded at a total contract sum of $2.592 bn to Messrs.Oilserv Plc/Company (Oilserv/CFHEC Consortium) for the first segment covering 303km and Messrs Brentex Petroleum Services/China Petroleum Pipeline Bureau for the 2nd segment covering 311km under a debt-equity financing model with loan from Bank of China/SINOSURE, to be repaid through the pipeline transmission tariff and supported by a sovereign guarantee.

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Your Excellency, all the required conditions precedent for closing the debt financing have been provided and the process of obtaining internal approval by the Lenders is in progress to enable financing close by August 2020.

As part of the Agreement, NNPC is utilizing the equity contribution to commence execution of the project to recover lost time and put the project back on track .

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