The Ajaokuta-Kaduna-Kano Gasoline Pipeline Undertaking, christened AKK Undertaking, is a significant venture that can improve pure gasoline provide by pipe from the southern to the northern a part of the nation. And as President Buhari kicks begin its development at this time, oil and gasoline specialists reckon that the venture will assist in the efforts in direction of discount of flared gasoline, improve use of home gasoline in addition to function an enormous enhance for the nation’s socio-economic growth, ASSISTANT EDITOR MUYIWA LUCAS writes.

Nigeria is thought to be a gasoline province with little oil contemplating the massive gasoline deposit. Based on the Division of Petroleum Sources (DPR), Nigeria as at January 2019 has over 200 trillion normal cubic toes (Tscf) of confirmed gasoline reserves. It additionally added that Africa’s largest oil producer flared as excessive as 324 billion normal cubic toes of gasoline in 2018. The flared gasoline can generate 2,500 megawatts (Mw) of energy and has capability to draw $3.5 billion investments within the nation, the DPR added.

America Geological Survey famous that Nigeria’s unproven gasoline reserves may very well be as excessive as 600Tscf confirming the truth that Nigeria is extra of a gasoline province than oil. Additionally, america Vitality Info Administration (EIA), quoting the Oil & Gasoline Journal, mentioned Nigeria had an estimated 200.four trillion cubic toes (Tcf) of proved pure gasoline reserves by the tip of 2019, in response to the Oil & Gasoline Journal. It said that Nigeria has the biggest pure gasoline reserves in Africa.

Based on the newest estimates by EIA, Nigeria produced 1.6 trillion cubic toes (Tcf) of dry pure gasoline, or marketed pure gasoline manufacturing, in 2019. It famous {that a} vital quantity of Nigeria’s gross pure gasoline manufacturing is both re-injected or flared. A few of Nigeria’s oil fields lack the infrastructure to seize the pure gasoline (related gasoline) produced with oil. Based on the latest information by the World Financial institution’s World Gasoline Flaring Discount Partnership (GGFR), Nigeria flared about 261 billion cubic toes (Bcf) of pure gasoline in 2018, making Nigeria the seventh largest pure gasoline flaring nation when it comes to annual pure gasoline flaring quantity, EIA mentioned.

Regardless of rating because the ninth gasoline producer on this planet, there had not been a deliberate seek for gasoline in Nigeria till very lately. With the massive pure gasoline assets of the nation, nevertheless, the nation’s home gasoline utilisation is low, with information revealing that out of the Liquefied Pure Gasoline (LNG) and Gasoline to Liquid (GTL) produced in Nigeria, solely 47 per cent is consumed in-country, 44 per cent exported, with 9 per cent flared. The low per capita home gasoline consumption is attributed largely to infrastructural deficiencies.

To drive the exploitation of pure gasoline and maximise worth from the useful resource, the Minister of State for Petroleum Sources, Timipre Sylva, on the Nigeria Worldwide Petroleum Summit (NIPS) in Abuja final February, declared 2020 because the ‘12 months of Gasoline.’ The entire essence of the declaration was to stress Federal Authorities’s dedication to worth creation from the gasoline useful resource by elevated home utilization for energy era and industrialisation, amongst others. With authorities’s renewed consideration on gasoline utilization, two main gasoline pipeline tasks – the Ajaokuta-Kaduna-Kano Gasoline Pipeline, and the Obiafu, Obrikom, Oben Gasoline transmission Pipeline System generally referred to as (OB3) venture will obtain precedence consideration.

Reeling out the advantages of AKK venture, a authorities’s transient on the venture sighted by The Nation mentioned: “AKK Gasoline Pipeline Undertaking is a 40-inch by 614km pipeline. It has capability to move 2.2Bcf/ of pure gasoline per day, which can be unlocked to the home market. It has capability to provide gasoline that may generate 3,600Mw of energy to be added to the nationwide grid. Apart from, it should revitalise over 232 industries,” including that in Kaduna State alone, over three million jobs had been misplaced resulting from energy disaster and closure of textiles industries.

“It can monetise the considerable gasoline assets locked up resulting from infrastructure deficit, create over a million jobs and moreover help the event of petrochemicals, fertiliser, methanol and different gasoline primarily based industries that can generate employment and facilitate balanced financial development. Additionally, primarily based on present actual gross home product (GDP), this profit quantities to roughly $1billion every year and given a conservative pipeline helpful lifetime of 30 years, this impact alone on the ability sector will, subsequently, produce a conservative cumulative acquire to GDP of $30 billion,” the transient defined.

Goldman Sachs, additionally, estimated that for each 5,000Mw of elevated energy provide in Nigeria, roughly one per cent GDP development every year can be added.

 

Graduation of AKK venture, standing and advantages

 

Right now, as President Muhammadu Buhari does a digital flag-off of the development section of the Ajaokuta-Kaduna-Kano pipeline concurrently in Ajaokuta in Kogi State and Rigachikun in Kaduna State, it represents a reinforcement of the administration’s investments in gasoline infrastructure focused at boosting home utilisation of pure gasoline. The AKK venture is a bit of the Trans-Nigeria Gasoline Pipeline (TNGP). It has capability to move about 2.2 billion cubic toes of gasoline day by day.

The implementation of the AKK venture, in response to the Federal Authorities, is premised on third-party financing, and aimed toward improved home gasoline provide, energy era and industrialisation.

The pipeline will originate from Ajaokuta in Kogi State, traverse Abuja (FCT), Niger State, Kaduna State and terminate in Kano State. It’s anticipated to be fed from the present home infrastructure with a capability of over 1.5 billion cubic toes of gasoline day by day (Bcf/d). It’s being expanded by Escravos-Lagos Pipeline System II (ELPS II) and (OB3) gasoline pipeline presently beneath development that can double the capability to over three billion cubic toes of gasoline per day

The best of method for the proposed AKK gasoline pipeline is deliberate to run parallel to the present Nigerian Pipelines and Storage Firm’s 16 inch-crude oil and 12 inch- product pipelines wherever attainable.

The Engineering, Procurement and Building Contract (EPC) of the venture which was awarded by the Federal Govt Council in 2017 has a completion interval of 24months and defect legal responsibility interval of 12 months.

Sylva defined that the AKK Undertaking when accomplished gives huge financial and social advantages to the nation. It could unlock 2.2billion cubic toes of gasoline to the home market, help the addition of three,600 megawatts of energy to the nationwide grid and revitalise the textile trade which alone boasts of over three million jobs in components of the nation and help the event of gas-based industries, which is able to create further employment.

 

Scope

 

The scope of labor consists of Engineering, Procurement, Building, Set up, Testing and Commissioning of a 40” x 614km pipeline system from Ajaokuta to Kano with related intermediate and terminal services to provide pure gasoline to off-takers at Abuja, Kaduna, Kano and Zaria environs and alongside the environs of the pipeline route.

Section one of many work consists of Engineering, Procurement and Building of 40” X303.4Km linear pipeline system from Ajaokuta to Kaduna with metering stations and a 20”x15km spur line. Section two consists of Engineering, Procurement and Building of 40” X310.6 Km linear pipeline system from Niger State to Kano with a 24” x 15km spur line.

The AKK gasoline venture is a part of the Nigerian Gasoline Grasp Plan (NGMC), a gasoline infrastructure blueprint, which was permitted by the Federal Govt Council in 2008, however which has obtained severe consideration of the Buhari administration. The opposite main home gasoline transmission techniques are the Western System, that’s, the present 36” Escravos-Lagos Pipeline (ELPS) I and II with 2.2 billion cubic toes capability and the continued East-West connection through the Obiafu/Obrikom-Oben Pipeline (OB3) with 2.four billion cubic toes per day capability, and the AKK Gasoline Pipeline.

AKK will provide gasoline to 3 Unbiased Energy Vegetation (IPPs) in Abuja with mixed output of 1350Mw, Kaduna (900Mw) and Kano (1350Mw). The AKK Undertaking was permitted by the Federal Govt Council (FEC) in December, 2017 on the premise of contractor financing whereas the expanded ELPS capability and OB3 are being financed by the yearly appropriated price range provisions.

FEC awarded the Engineering, Procurement and Building Contract (EPC) to M/S Oilserv Plc Consortium & CFHEC1 and M/S Brentex Petroleum Companies and China Pipeline Bureau (Brentex-CPP) 2 on build-and-transfer-basis (BT) with a completion interval of 24months and defect legal responsibility interval of 12months;

Sources and the Ministry of Petroleum Sources mentioned President Buhari’s flag off of the AKK Undertaking at this time is an affidavit to the untiring efforts of stakeholders who had contributed in a technique or one other to the gasoline growth efforts of the nation, the sources mentioned. They added that the Buhari Administration will ever be remembered for taking the sensible step to making sure vitality safety for the nation by consolidating Nigeria’s aspiration to have a nationwide vitality combine that works for the nation and your complete citizenry.

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