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The year of gas in Nigeria: Takeaways from $2.8bn AKK Gas Pipeline Project

Barring unforeseen circumstances, President Muhammadu Buhari will today (June 30, 2020) flag off the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) gas pipeline construction.

As the Technical Adviser (TA) on Gas Business & Policy Implementation to the Honourable Minister of State, Petroleum Resources, Federal Ministry of Petroleum Resources (MPR), I steer & drive the implementation of the National Gas Policy built on the policy goals of the Federal Government for the gas sector vis-à-vis removing the barriers affecting investment & development of the gas sector; the delivery of critical gas infrastructure, discontinue with a centrally planned national market development and opt for a project-based & market opportunity-led approach as a more effective way to grow gas markets.

I also superintendent the overall vision of the FG to make Nigeria an attractive gas-based industrial nation as well as giving primary attention to meeting local gas demand requirements, developing a significant presence in international markets and to move Nigeria from a crude oil export-based economy to an attractive gas-based industrial economy. I also double as the Program Manager (PM) of the Nigeria Gas Flare Commercialisation Programme (NGFCP) + AutoLPG in the National Gas Expansion Programme (NGEP) in the office of Honourable Minister of State, Petroleum Resources, Federal Ministry of Petroleum Resources (MPR).

The AKK Project

The project is a 614km-long natural gas pipeline currently being developed by the Nigerian National Petroleum Corporation (NNPC).

With over 203 TCF of proven natural gas, Nigeria is finally on the verge of unlocking huge economic benefits arising from its natural gas endowment. For many years, the country had been hindered by absence of gas transmission pipelines in her bid to harness its abundant gas reserves for provision of gas to generate electricity, and stimulate rapid industrialisation using gas as feedstock for fertilisers, ammonia and other petrochemical applications.

No doubt the Ajaokuta-Kaduna-Kano (AKK) 614km-long natural gas pipeline project is currently being executed by the Nigerian National Petroleum Corporation (NNPC).

The project with an estimated $2.8 billion cost… will result in the establishment of a connecting pipeline network between the eastern, western and northern regions of Nigeria.

It also aims to create a steady and guaranteed gas supply network between the northern and southern parts of Nigeria by utilising the country’s widely available gas resources.

The Project will also help reduce the huge quantity of gas flared annually in Nigeria, as well as the subsequent environmental & social impacts.

Benefits of AKK pipeline

The AKK natural gas pipeline is intended to boost Nigeria’s electricity generation capacity, as well as strengthen the industrial sector within the country’s eastern and northern regions.

The project is also expected to promote and increase the local usage of domestic gas.

Additionally, it is anticipated to increase the country’s revenue generation through the export of natural gas.

Derefaka is a Technical Adviser (TA) – Gas Business & Policy Implementation to The Honourable Minister of State, Petroleum Resources

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