The Group Managing Director of the Nigerian National Petroleum Corporation, NNPC has said that the Corporation is transitioning towards becoming an Integrated Energy Company to support President Buhari’s economic diversification efforts.
Kyari made this know at the historic flag-off of the construction phase of the AKK Gas Pipeline Project in Kogi State on Tuesday, 30 June, 2020.
He further said that the Master Plan is meant to leverage on the Nation’s huge natural gas reserve base to stimulate unprecedented economic growth and enable Nigeria’s migration from the current mono-economy into a diversified economy.
Excerpt is the full text of the Group Managing Director:
It is with great honour & privilege that I welcome Your Excellency, Pres. Buhari President/Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, to this historic flag-off of the construction phase of the AKK Gas Pipeline Project.
This event would not have been possible without the full and unflinching support of His Excellency, Mr. President. We thank you Sir.
The current Administration under the leadership of His Excellency, President Buhari has made it a priority to ensure revenues from oil and gas resources are utilized to support the emergence and growth of other non-oil sectors of the economy.
NNPC is thus transitioning towards becoming an Integrated Energy Company to support His Excellency, Mr. President’s economic diversification efforts. One of such efforts is the expansion of the Corporation’s domestic gas footprint with the delivery of the Trans-Nigeria Pipeline Project which includes the Escravos to Lagos Pipeline System (ELPS) 2, the Obiafu-Obrikom-Oben (OB3) gas pipeline & the Construction of these critical enablers is in line with NNPC’s responsibility of implementing the National Gas Infrastructure Blueprint which is part of the Nigerian Gas Master Plan.
The Master Plan is meant to leverage on the Nation’s huge natural gas reserve base to stimulate unprecedented economic growth and enable Nigeria’s migration from the current mono-economy into a diversified economy.
The AKK Project, which is part of the Trans-Nigeria gas pipeline project, involves the establishment of a connecting gas pipeline network that will integrate the Northern region of the country with the Niger Delta, Eastern and Western regions of the Country.
The EPC contract for the 614km AKK Gas Pipeline Project was awarded at a total contract sum of US$2.592bn to Messrs. Oilserv Plc/China First Highway Engineering Company (Oilserv/CFHEC Consortium) for the first segment covering 303km and Messrs Brentex Petroleum Services/China Petroleum Pipeline Bureau for the 2nd segment covering 311km under a debt-equity financing model with loan from Bank of China/SINOSURE, to be repaid through the pipeline transmission tariff & supported by a sovereign guarantee.
Your Excellency, all the required conditions precedent for closing the debt financing have been provided and the process of obtaining internal approvals by the Lenders is in progress to enable financing close by August 2020.
As part of the agreement, NNPC is utilizing the equity contribution to commence execution of the project to recover lost time and put the project back on track.
We are confident that the EPC contractors will deliver the project on time, within budget and to quality/specifications.”
Upon completion, the project would enable the injection of 2.2bscf/d of gas into the domestic market and facilitate additional power generation capacity of 3,600MW
Your Excellency, the realization of this project will therefore bring about the needed transformation in power generation and industrial growth in the Country.
I would like to recognize and commend the collaborative efforts of all stakeholders which include the Executive Governors of Kaduna, Kano, Kogi and Niger States, the Ministries of Petroleum Resources, F.C.T, Finance, Budget & National Planning and Foreign Affairs, the Central Bank of Nigeria, the Debt Management Office, the Infrastructure Concession Regulatory Commission, the Department of Petroleum Resources, the Nigerian Content Development and Monitoring Board.
Your Excellencys, Guests, Distinguished Ladies and Gentlemen, let me once again welcome you all to the Presidential Flag-off of construction activities of the AKK Gas Pipeline Project by His Excellency, Pres. Buhari, the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria; A fulfillment of His Excellency, Mr. President’s pledge to the Nation.
I thank you very much for listening.
Long Live the NNPC
Long Live the Ministry of Petroleum Resources!!
Long Live the Federal Republic of #Nigeria!!!” #AKKProject
Mallam Mele K. Kyari
Group Managing Director, NNPC
June 30, 2020