the Nigerian National Petroleum Company (NNPC), through the Federal Government of Nigeria, is seeking US $ 1 billion from lending agencies, including import-export institutions, to continue work on the ongoing construction of the Ajaokuta-Kaduna-Kano pipeline (AKK).
It is after the Chinese lenders (the bank of china and Sinosure, a Chinese export and credit insurance company), which had pledged to offer most of the funds (85%) for the implementation of the project, did not disburse the money as planned.
Work on the AKK gas pipeline project started about 12 months ago and NNPC has almost exhausted the envelope corresponding to its commitment to invest the remaining 15% in the project.
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AKK’s delay is the latest sign of the failure of financial support for infrastructure projects across the African continent, after years of large Chinese loans for rail, energy and other projects. According to some sources, Chinese bank loans to African infrastructure projects have fallen across the continent, from US $ 11 billion in 2017 to US $ 3.3 billion in 2020.
An overview of the AKK pipeline
The 614 km AKK pipeline begins at the Ajaokuta Terminal Service Station (TGS) in Kogi to a service station in Kano State.
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It will be built in four segments, the first of which will stretch from Ajaokuta to Abuja for a total distance of 200 km. The second segment will run from TGS Abuja to TGS Kaduna, a distance of 193 km, while the third segment will be 97 km from Kaduna to Zaria. The fourth and final section of the pipeline will be 124 km from Zaria to TGS Kano.
The pipeline will consist of 40 inch diameter pipe joints and will operate at a pressure of 1000 pounds per square inch (PSIG).
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The purpose of the pipeline
When completed, it will transport up to 3,500 million cubic feet of gas per day from various gas gathering projects in southern Nigeria.
Liquid hydrocarbons will be processed at Ajaokuta to produce liquefied petroleum gas, while the remaining gas will be transported to supply new power plants and petrochemical facilities in Abuja, Kaduna, Kano and Katsina.