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Nigeria’s $2.8bn AKK Pipeline to stimulate economy, enhance Local content, others

Nigeria’s $2.8bn AKK Pipeline to stimulate economy, enhance Local content, others

By Udeme Akpan & Sebastine Obasi

President Muhammadu Buhari will on Tuesday flag off the development of $2.eight billion Ajaokuta-Kaduna-Kano (AKK) pipeline, thus laying the muse for the stimulation of Nigeria’s financial system.

A consortium of indigenous and worldwide engineering companies will ship the 614-kilometer gasoline pipeline conceived to supply the extremely desired stimulus to home industrial development.

In an announcement obtained by Vanguard, Oilserv Limited, concerned within the undertaking, said: “This undertaking may also, sign the best hour up to now for the Nigerian Content Policy objectives. The president, by the flag off of this undertaking at Ajaokuta, Kogi State, can be turning to actuality a number of the nation’s long run financial aspirations of boosting home power infrastructure, b) deepening the native gasoline market, creating industrial corridors with cleaner gas, and commercializing the nation’s considerable gasoline sources.

“The project, according to the Nigerian National Petroleum Corporation (NNPC), will significantly curb gas flaring in the Niger Delta and guarantee better air quality in the oil producing region.”

Similarly, it said: “Furthermore, the pipeline, which was conceived to attach demand from the northern a part of the nation with provide from the south, can be the largest infrastructure growth within the nation’s latest historical past. It may also mark a big shift within the nation’s power coverage; from income, focused export programmes to growth centered home provide programmes.

“Significantly, the $2.eight billion undertaking will break by on the 30th of June after seven years of rigorous processes that morphed from coverage conception by implementation technique designs, master-plans and stable implementation programmes.

“Perhaps the largest worth to the financial system is the participation of indigenous engineering companies led by pipeline large, Oilserv Limited, within the supply of a number of the phases of the undertaking.

“The firm has efficiently delivered over 17 comparable difficult tasks within the nation together with the engineering, procurement and development (EPC) of the 67-kilometre Obiafu/Obrikom to Oben (OB3) 48-inch diameter Gas Transmission Pipeline System.

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“The Oilserv consortium is slated to deliver the first 200-kilometre phase of the AKK pipeline, which covers the section between Ajaokuta and Abuja, after securing the EPC contract in April 2018.”

Continuing, it said: “Nigeria’s Presidency had confidently asserted that, the AKK pipeline undertaking is itself a piece of an formidable pipeline undertaking to produce gasoline to Europe by the proposed Trans Sahara Gas Pipeline (TSGP) and Nigeria Morocco Gas Pipelines.

“Thus, within the quick time period the AKK will guarantee power sufficiency for home commerce and trade, and in the long run, having deepened and happy home demand, morph into an export pipeline and financial mainstay.

“The AKK pipeline in Nigeria’s prevailing socioeconomic downturn will prove to be fortuitous as well as strategic even as the world steps away from fossil fuel. Beyond the immediate need to stem the devastation of the corona pandemic and stimulate activity in the domestic economy, the AKK which is already potentially poised as a very central economic powerhouse in Nigeria will also create deeper, more enduring values, including, multiplier effect in the local content circles, cleaner environment for the host communities, accelerated technical growth, direct citizen utility, industrial convenience, and of course general broadening of the economy, etc.”

Vanguard Nigeria News

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