Trans Nigeria Gas Pipeline
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Trans Nigeria Gas Pipeline is a gas pipeline with segments that are proposed and under construction in Nigeria.[1] It is tracked independently in the Global Energy Monitor database, but some reporting includes it as part of the Trans-Sahara Gas Pipeline.
Location
The pipeline will run from the Qua Iboe Terminal, Nigeria to the gas terminal in Kano, Nigeria, where it would connect with the Trans-Sahara Gas Pipeline.[1]
Project details
Phase 1: Ajaokuta–Kaduna–Kano Pipeline (AKK Pipeline)
- Operator:
- Owner: Nigerian National Petroleum Corporation (NNPC)[2]
- Parent company: Nigerian National Petroleum Corporation (NNPC)
- Proposed capacity: 3.5 billion cubic meters per year[2]
- Length: 614 km[3][4]
- Status: Construction[5]
- Diameter: 36–40
- Cost: US$2.89 billion[5]
- Financing: US$2.6 billion loan from the Bank of China, and a US$434 million equity investment from the Nigerian Gas Company, a subsidiary of NNPC[5]
- Start year: 2025[6]
Phase 2 (Qua lboe Terminal–Cawthorne Channel) and Phase 3 (Oyigbo–Ajaokuta)
Phase 2 involves the construction of the second section of Trans-Nigeria Gas Pipeline starting from Qua Iboe Terminal to Cawthorne Channel in Rivers, traversing Obigbo–Umuahia–Enugu–Ajaokuta. It will also comprise a metering station, which is to be constructed in Obiafu/Obrikom.
Phase 3 starts from Obigo gas compressor station and the Ajaokuta node.[10]
- Operator:
- Owner: Nigerian National Petroleum Corporation (NNPC)[2]
- Parent company: Nigerian National Petroleum Corporation (NNPC)
- Proposed capacity: 3.5 billion cubic meters per year[2]
- Length: 686 km[3]
- Status: Proposed[3]
- Cost:
- Financing:
- Start year:
Background
The Trans Nigeria Gas Pipeline Project (TNGP) will run from the Qua Iboe Terminal through the Obigbo-Umuahia-Enugu-Ajaokuta network and the Ajaokuta-Abuja-Kaduna-Kano (AKK) network.
Phase 1
The AKK Gas Pipeline constitutes Phase 1 of the TNGP Project.[1] Phase 1 originates in Ajaokuta, traversing Abuja, Kaduna and terminating at a terminal gas station in Kano. The proposed pipeline will be supplied with gas sourced from various gas gathering projects. The AKK pipeline is estimated to be 614 kilometers in length total, with sections including: a 187-kilometer pipeline from Ajaokuta to Abuja; a 193-kilometer pipeline from Abuja to Kaduna; a 65-kilometer pipeline from Kaduna to Zaria; and a 238-kilometer pipeline from Zaria to Kano.
The gas line will provide gas to cement firms, compressed natural gas users, power generation plants, and other industrial concerns, as well as residential customers, within the northern half of the country. Nigeria plans to build three new gas-fired power plants, to be located in Abuja, Kaduna and Kano, which would use gas provided by the pipeline to generate 3,600 MW of power.[11] The (AKK) Pipeline Project is estimated to cost about US$2.8 billion dollars. The Nigerian National Petroleum Corporation and the Federal Government are expected to meet financial gaps and guarantee the return on net investment.[1]
In January 2020, the Nigerian government announced a sovereign debt guarantee for US$2.5 billion in financing for the pipeline's construction, and NNPC stated that it planned to have the funding secured from Chinese lenders by Q2 2020. The pipeline would be built using a build-and-transfer public-private partnership model. At the time, NNPC stated that construction would begin in March.[11][12]
In July 2020, the construction of the pipeline project was officially launched.[2] At the same time, details emerged about the financing of the overall pipeline project. China Export & Credit Insurance Corporation (Sinosure) is providing insurance cover for 85 percent of the total cost, estimated at US$2.89 billion. Nigeria is borrowing US$2.6 billion over 12 years from the Bank of China at Libor (London interbank offered rate) plus 3.75 per cent. The remaining US$434 million will come as equity from the Nigerian Gas Company, a subsidiary of NNPC.[5]
It was reported in July 2021 that the financing for the pipeline had become complicated due to Bank of China's unwillingness to start disbursing the funding which it had pledged in 2020. A spokesman for NNPC said it was still negotiating with Bank of China and Sinosure to cover US$1.8 billion of the project cost. There was also speculation that the company was turning to other potential funders, including export credit agencies.[13]
As of early 2024, the AKK Pipeline was reportedly set to be inaugurated at the end of 2023.[14] There was not evidence to confirm this as of February 2024, though, and it is still considered under construction.
Articles and resources
References
- ↑ 1.0 1.1 1.2 1.3 Ajaokuta – Kaduna – Kano Pipeline Project Oil and Gas Nigeria, accessed Sep. 6, 2021.
- ↑ 2.0 2.1 2.2 2.3 2.4 Nigeria starts building the Ajaokuta-Kaduna-Kano gas pipeline, EnerData, Jul. 1, 2020, accessed Sep. 6, 2021.
- ↑ 3.0 3.1 3.2 AKK natural gas pipeline project, Hydrocarbons Technology, accessed Sep. 6, 2021.
- ↑ NNPC boosts 1300-km pipeline project for gas delivery to Europe, Nigeria Infrastructure Concession Regulatory Commission, May 5, 2021, accessed Sep. 6, 2021.
- ↑ 5.0 5.1 5.2 5.3 Jevans Nyabiage, Work begins on Nigeria’s China-funded US$2.8 billion gas pipeline, South China Morning Post, Jul. 2, 2020, accessed Sep. 6, 2021.
- ↑ "FG Highlights AKK Gas Pipeline's Massive Impact on Economy, Industrialisation ...As Kyari Assures Project Will be Ready 1st Qtr 2025". NNPC. Retrieved 2024-11-14.
- ↑ "https://leadership.ng/akk-gas-pipeline-project-on-course-for-completion-2023-fg/". Retrieved 2022-07-13.
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- ↑ "'We'll get finance from Europe': Nigeria's Sylva bullish about funding for $13 billion Trans-Sahara Gas Pipeline | Upstream Online". Upstream Online | Latest oil and gas news. 2022-07-04. Retrieved 2022-08-02.
- ↑ "https://punchng.com/nnpcl-to-inaugurate-2-8bn-akk-gas-pipeline-december/".
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- ↑ "https://www.bncnetwork.net/project/TransNigeria-Gas-Pipeline-Phase-3/MjEyOTY2/". Retrieved 2022-08-02.
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- ↑ 11.0 11.1 Ruth Olurounbi, Nigeria secures $2.5bn gas pipeline finance, Petroleum Economist, 24 Jan. 2020.
- ↑ Terhemba Daka & Saxone Akhaine, ‘Work on Ajaokuta-Kaduna-Kano gas pipeline to begin soon with 15% equity funding’, Nigeria Guardian, 9 Mar. 2020
- ↑ Libby George, Nigeria seeks $1 bln for key gas pipeline as it awaits Chinese lending, Reuters, Jul. 16, 2020.
- ↑ "https://punchng.com/nnpcl-to-inaugurate-2-8bn-akk-gas-pipeline-december/".
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