Over 89% of petroleum pipelines across Nigeria is either out of use due to lack of maintenance or vandalised. There has been no plan both in former administration and current leadership to revive the infrastructure. The scenario has given credence to rampant development of tank farms along Lagos and Ogun States coastal communities. And that is the origin of traffic gridlocks caused by tankers on every major road in Lagos
The federal government has sealed one of the 25 Memoranda of Understanding (MoU) with China National Petroleum Corporation (CNPC) for the financing of the Ajaokuta-Kaduna-Kano gas pipeline project.
A statement issued by the Group General Manager, Public Affairs Division, NNPC, Mr Ndu Ughamadu said the Nigerian National Petroleum Corporation (NNPC) and CNPC’s management held on the sidelines of the Forum on China-Africa Cooperation (FoCAC) Summit in Beijing, China.
CNPC assured the Group Managing Director of NNPC, Dr Maikanti Baru, of its unflinching commitment towards securing the funding for the successful financing and execution of the project. Financing for the 40-inch x 614km AKK gas pipeline is expected to cost about $2.8bn.
Details of the deal showed that whereas 85 per cent of the money is expected to be provided by the financiers, which include Industrial and Commercial Bank of China, Bank of China, and Infrastructure Bank of China with Sinosure, China’s Export Credit Agency providing insurance cover, the remaining 15 per cent will be provided by the contractors, which include Oilserve/Oando consortium, as well as Brentex/China Petroleum Pipeline Bureau consortium.
The AKK gas pipeline described as the single biggest gas pipeline in the history of oil and gas operations in Nigeria would enable connectivity between the East, West and North.
Speaking on behalf of over six CNPC subsidiaries at the meeting, the Assistant President and board member of the CNPC, Mr Wang Shihong, said his company placed a high premium on the AKK project, describing it as the beginning of several collaborations between the two corporations.
Shihong averred that “We are in full support of Nigeria’s quest to deliver the AKK project. We are working relentlessly towards securing funding for the project based on regulations and policies of Chinese financial institutions”.
According to him, the CNPC cherished its relationship with the NNPC and would continue to support its subsidiary, CPP Bureau.
In his remarks, Baru said the AKK project was dear to Nigeria, adding that while at the FOCAC Summit, President Muhammadu Buhari reiterated the potential of the project to strengthen Nigeria-China relations.
While hinting that the NNPC was looking forward to a successful close-out of the project’s financing towards official groundbreaking ceremony in October, Baru said “We want to maximise the construction work before the end of the year. We are hoping for the quick resolution of the financing agreements so that we will kick-start the project in October when the dry season begins.”
