…Flags Off Ajaokuta-Kaduna-Kano Gas Project
President Muhammadu Buhari yesterday said harnessing and commercialising the nation’s vast natural gas reserves is an enabler for rapid economic development and diversification of the economy.
Speaking at the virtual flag-off ceremony of the Abuja-Kaduna-Kano Gas (AKK) gas pipeline at Ajaokuta, Kogi State and Rigachikun, Kaduna State camp sites simultaneously, President Buhari said the project was very dear to the country and affirm that it must succeed.
He therefore assured Nigerians of his administration’s commitment to ensuring timely delivery of the project within budgetary allocation and specifications.
According to President Buhari, the Novel Coronavirus (COVID-19) pandemic further underscore the drive of his administration’s desire for export substitution initiatives adding that the AKK project will promote local manufacturing.
“Harnessing and commercialising our vast gas reserves is an enabler for rapid economic development and diversification of the economy,” he said.
“This remains a cardinal objective of our administration’s drive towards ensuring a stable, sustainable and more prosperous future for our citizenry.”
The President, therefore, directed the NNPC and partners to remain focused, noting that the AKK project is part of the delivery of the present administration’s Next Level Agenda for sustainable development, enhancement of economic prosperity and increase of the country’s infrastructure assets.
Governors Yahaya Bello of Kogi State and Nasir El-Rufai of Kaduna physically flagged off the commencement of works at Ajaokuta and Rigachikun sites, while the President watched remotely via video-conference from the Council Chamber in Abuja.
President Buhari said: ‘‘We promised the nation that we will expand the critical gas infrastructure in the country to promote the use of gas in the domestic market.
‘‘These include the Escravos to Lagos Pipeline System – 2 (ELPS-2), Obiafu to Obrikom (OB3) pipeline and AKK. These projects are fundamental to our desire to industrialise and energise the entrepreneurial spirit that is ever present in our population.’’
Enumerating the benefits of the project, billed to be completed in two years, the President said it will provide gas for generation of power and for gas-based industries which would facilitate the development of new industries.
It will also ensure the revival of moribund industries along transit towns in Kogi State, Abuja (FCT), Niger State, Kaduna State and Kano State, he said, adding that the cascading effect and impact of the AKK, when operational, will be immeasurable.
His words: ‘‘It has significant job creation potential both direct and indirect, while fostering the development and utilisation of local skills and manpower, technology transfer and promotion of local manufacturing.’’
President Buhari announced that Nigeria had learnt invaluable lessons from the global COVID-19 pandemic and some oil rich countries that have used their crude as a pathway to economic and industrial diversification.
On diversification, the President said: ‘‘Gulf countries that have similar levels of gas reserves as Nigeria, have a strategy centered around gas-industrialisation as their foundation towards export diversification. This has to be our guiding principle as we seek to attract investment and create opportunities for our people.’’
The President also used the occasion to challenge the private sector to lead the charge in maximising the nation’s gas resources.
According to him the private sector can create a petrochemical hub that will resurrect the manufacturing industry and put the nation on the path to increased self-sufficiency.
‘‘As the world evolves, we owe our people the responsibility to prepare them for what the future holds. We, therefore, must be bold and fearless and can no longer be incremental in our approach.
‘‘Time is short, and our people’s zeal is strong and palpable. Infrastructure development although long, tedious and complex remains a cardinal objective of our administration’s drive towards ensuring a stable, sustainable and more prosperous future for our citizenry.
‘‘Today marks an important chapter in the history of our great Nation. It marks the day when our domestic natural gas pipeline networks; from Obiafu in Rivers State, Escravos in Delta State and Lekki in Lagos State, are being connected through Kaduna to Kano States thereby enhancing national energy security, creating balanced development, and further integrating our nation,’’ he said.
The President commended the government of the People’s Republic of China; the financiers the Bank of China and SINOSURE; and the two EPC Contractors (Brentex/China Petroleum Pipeline Bureau-CPP Consortia and Oilserve/China First Highway Engineering Company-CFHEC Consortia) for their support to deliver the important project.
He also congratulated the Ministry of Petroleum Resources, NNPC and all relevant stakeholders on the epoch-making occasion, commending the resilience of the team to deliver on the project despite the COVID-19 pandemic.
The President appealed to governors of Kogi, Niger, Kaduna and Kano States as well as the minister of the Federal Capital Territory to provide the enabling environment and support for the project.
Also speaking, the Kogi State governor, Yahaya Bello thanked President Muhammadu Buhari for flagging off the project, saying his foresight, love and commitment to the growth and development of the country is unprecedented.
Bello said the importance of the project cannot be overemphasised, saying, when completed, AKK will provide the desirous stimulus to domestic industrial growth and boost domestic energy infrastructure.
In his remarks, Mallam Mele Kyari, Group managing director, NNPC, explained that the AKK gas pipeline project, which is part of the Trans-Nigeria gas pipeline project, involves 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.
He said the EPC contract for the 614km AKK gas pipeline project was awarded at a total contract sum of $2.592 billion to Messrs. Oilserv Plc/China First Highway Engineering Company (Oilserv/CFHEC Consortium) for the first segment covering 303km.
According to the GMD NNPC, Messrs Brentex Petroleum Services/China Petroleum Pipeline Bureau (Brentex/CPP Consortium) got the contract for the second segment covering 311km under a debt-equity financing model with loan from Bank of China and SINOSURE, to be repaid through the pipeline transmission tariff and supported by a sovereign guarantee.
‘‘We are confident that the EPC contractors will deliver the project on time, within budget and to quality/specifications,’’ he said.
Kyari added that upon completion, the project would enable the injection of 2.2bscf/d of gas into the domestic market and facilitate additional power generation capacity of 3,600MW.