Saturday, June 27, 2020 8:54 am
$2.8 Billion AKK Pipeline Project: Buhari Strikes Again
By Femi Adesina
Something good is already happening. Something marvelous is in store, as Federal Government kickstarts the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) National Gas Pipeline Project next Tuesday. It’s another humongous signature milestone by President Muhammadu Buhari, which will leave his footprints inexorably on the sands of time.
Roads. Bridges. Rail. Airports. Social Investment. And many others. Buhari is doing great things, which will pedestal him in the pantheon of great Nigerian leaders. And now, he has struck again. He is kicking off the AKK pipeline project, which will carry gas between the southern and northern parts of the country. The project will eventually extend to North Africa.
The Nigerian National Petroleum Corporation (NNPC) initially announced tenders for the project in July 2013. A project proposal was submitted to the Infrastructure Concession Regulatory Commission in June 2017, and the Federal Executive Council granted approval in December 2017. I tell you, this President Buhari has the heart of a lion.
If the intention was to continue to run the NNPC as an automated teller machine (ATM), as we have seen before in this country, will such staggering project ever be approved, not to talk of taking off? And some people are still asking for Change, when it is right before their very eyes.
The 614 kilometers-long national gas pipeline is Phase One of the Trans-Nigeria Gas Pipeline (TNGP) project, to be done on build and transfer public-private-partnership. It will transport 3,500 million metric standard cubic feet per day of dehydrated gas from several gas gathering projects located in southern Nigeria.
The project will be in three phases. Phase One is 200 kilometers-long, between Ajaokuta and Abuja, at a projected cost of $855 million.
Phase Two is 193 kilometers-long, between Abuja and Kaduna, to cost an estimated $835 million, while Phase Three is 221 kilometers-long, between Kaduna and Kano, at an approximate cost of $1.2 billion.
The project will eventually reach North Africa in subsequent phases.
What will AKK pipeline project do for Nigeria? Great and wonderful things. It will create steady and guaranteed gas supply network between the North and South, and will enhance power generation capacity. The industrial sector will be strengthened, local usage of gas will be promoted and increased, and the country’s revenue generation boosted through export of natural gas.
Nigeria is ranked the 7th most endowed natural gas country in the world. She sits on about 180 trillion cubic feet of natural gas deposits, which can be utilized as gas to power, gas to petrochemicals, liquefied natural gas (LNG), liquefied petroleum gas (LPG), compressed natural gas (CNG), among others.
Over the years, Nigeria has exploited its oil resources more, to the detriment of gas, which incidentally fetches more revenue, but is also more expensive to prospect. One big advantage the average Nigerian can look forward to is the evolvement of compressed natural gas (CNG), which is still at pilot stage in the country.
While presenting his performance report to the Federal Executive Council recently, Minister of State for Petroleum, Timipre Sylva, spoke extensively about CNG, and what it can do for Nigeria as an alternative to petrol. He listed the challenges of the oil and gas sector to include; under-recovery, crude theft, insecurity, high cost of production, very low LPG penetration, refineries shutdown, long contracting cycle, among others.
Sylva stressed that the oil and gas sector remains critical to the Nigerian economy, even as we strive to diversify. He identified CNG and LPG penetration as priority. Said the Minister: “The switch to CNG will help reduce the burden of petrol subsidy on the finances of the country, and government should encourage Nigerians to use CNG as fuel for transportation.”
CNG began as a pilot project in the country in 2006, but target for conversion workshops was not met till 2015. About 4,000 vehicles run on CNG in Benin, Edo State, and it’s about 50% cheaper than petrol. Vehicles running on CNG, statistics show, save about N1,143 daily, compared with petrol. This amounts to over N30, 000 monthly. The cost of converting the car can thus be recovered within six months.
Gas is cleaner energy, cheaper than petrol, and more friendly to the environment. Global warming will, therefore, be slowed down.
More than 175,000 vehicles run on CNG in America today, and 23 million worldwide. Nigeria will join the number, and boost productivity.
The Buhari signature projects will remain landmarks in Nigeria. Help me count them: Roads, rail, bridges, airports, agriculture, AKK… and may more.
Surely, we will always remember this President for good.
– Adesina is Special Adviser to President Buhari on Media and Publicity