Business

2024 deadline for $2.8bn AKK gas project completion sacrosanct – Minister

Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, on Thursday directed Oilserve Limited, the contractors handling the 614-kilometer Ajaokuta, Kaduna, Kano (AKK) gas pipelines project, to stick to the July/August 2024 completion deadline.

The project is estimated to cost $2.8 billion and will will support the generation of about 3,600mw of power. AKKP is a pipeline planned to transport natural gas from Ajaokuta in Kogi State to Kanoin Kano State, through several states and urban centers, as part of the Trans Nigeria Gas Pipeline. Construction of the AKKP commenced in July 2020.

The minister, who was not pleased with the slow pace of work at the project, warned the contractors that there must not be any excuse why it should default with the deadline.

Ekpo spoke during his tour of the project yesterday. He was accompanied on the tour by the Authority Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority,  Farouk Ahmed, top officials of the Nigerian National Petroleum Company Limited (NNPCL) and other industry stakeholders. Mr. Olalekan Ogunleye EVP Gas, Power & New Energy, represented the Group Chief Executive Officer of NNPCL, Mele Kyari.

A statement by the minister’s spokesman, Louis Ibah further said that Ekpo opined that the economic prosperity of Nigeria was tied to the AKK project as it was designed to supply gas to homes, automobiles, electricity and industrial users within Abuja, Kaduna, Kano and adjourning states of the federation.

The minister also appealed to Nigerians to be patient with the President Bola Tinubu-led Federal Government and assured that the economic situation of the country would improve for the benefit of all citizens next year by the time the AKK project and other economic programmes start yielding dividends.

Ekpo said, “The July/August deadline should be sacrosanct and there should be no excuse; that is what we are going to look at.

“I appreciate what the contractors are doing. But I want you to know that the prosperity of Nigeria depends on this project because energy is synonymous with prosperity, and when this project is completed we will have energy security in our country; investors can then come in to do business and also create jobs for our citizens.

“There will be Compressed Natural Gas (CNG) for cars and Liquified Petroleum Gas (LPG) Cooking gas) will be made available for more homes. Industries and power stations will also benefit from this project. This project holds the keys to the growth of our economy and in fact, we have enough gas for the project.”

Chairman of Oilserve Limited, Emeka Okuosa, said the project would be completed for inauguration between July and August 2024.

He listed some of the challenges slowing down the AKK gas pipeline including insecurity in neighbouring Niger State and a right-of-way characterised with rocks and rivers.

He said the company was working with the NNPCL and security agencies to curtail the pockets of insecurity and ensure contractors work both day and night to meet the July/August 2024 deadline.

“The July, August deadline should be sacrosanct and there should be no excuse; that is what we are going to look at,” Ekpo reiterated while appealing to Nigerians to be patient with the President Bola Tinubu-led Federal Government, assuring that the economic situation of the country would improve for the benefit of all citizens next year by the time the AKK project and other economic programmes start yielding dividends,” Okuosa said.

NNPCL on its social media handle: X formerly Twitter explained that the team were in Pai Village in Kwali Area Council of the Federal Capital Territory Abuja to inspect the progress of work on the Pai River Crossing through the deployment of Horizontal Directional Drilling Technology as part of the ongoing work executed by Oilserv Limited (Segment A Contractor, on behalf of NNPC Limited) to deliver the 614 KM Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project.

It stated that NNPCL and its EPC contractors remained highly committed to the strategic national infrastructure project through responsive project delivery, active collaboration with government security agencies and communities, and the deployment of cutting-edge technology to deliver the project for the benefit of all Nigerians.

What's your reaction?

Leave Comment