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Tag: Gas pipeline

  • $2.8b AKK gas pipeline ready November

    $2.8b AKK gas pipeline ready November

    There are strong indications that the $2.8 billion Ajaokuta–Kaduna–Kano (AKK) Natural Gas Pipeline project may be mechanically ready in November. Already, the project is 83.05 per cent completed, according to the Executive Director, Nigeria Gas Infrastructure Company Limited (NGIC), Audu Ibrahim, an engineer.

    Ibrahim, made this known while giving an update on the state of work already done on the pipeline at the NNPC Gas Power and New Energy Directorate for the 2025 AKK Business Development Forum, said segment one is 79.76 per cent complete, while the overall completion of the mainline is 83.05 per cent as of July 19, 2025.

    He added that pre-commissioning activities are ongoing, saying, by November, “We should have the AKK Pipeline end-to-end mechanically completed.”

    The Group Chief Executive Officer of Nigerian National Petroleum Company Ltd. (NNPC), Bayo Ojulari, assured of the speedy delivery of the project, adding that the project will unlock economic prosperity when it comes on board.

    According to Ojulari, the second segment of the AKK project is a 320-kilometer pipeline which he said all welding works on it have been completed.

    “We do not acknowledge the nearing completion of an engineering marvel only. We collectively recognise the need to work hard, or let me even say harder, together, to make sure the full benefit of this pipeline of prosperity is fully realised.

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    “This is a milestone in Nigeria’s journey towards energy security, economic revitalisation, and industrial resilience. The AKK pipeline is more than infrastructure. It is a lifeline for economic advancement, job creation, and national integration.”

    The NNPC boss described the gas pipeline as a strategic economic catalyst for Nigeria, which is poised to reshape the landscape through power generation and industrial growth.

    “The pipeline will supply up to 2.2 billion standard cubic feet of gas a day. Foil in power plants in Abuja, Kaduna, Kano, and others. This will revive industries, especially in the Northern Nigeria, where I grew up.”

    He disclosed that over 1,900 skilled and semi-skilled Nigerians have already been employed directly on the project, adding that “Thousands more will be employed once the pipeline becomes operational due to economic spin-offs that will occur all across the sectors.

    Ojulari noted: “The AKK pipeline supports Nigeria’s decade of gas initiatives aimed at reducing reliance on oil and expanding gas-based industries. It enhances energy equality by extending gas infrastructure to the northern region, which have historically lagged behind in access to energy.

    “Transportation and Agriculture, the pipeline with deepened compressed natural gas adoption for transport, lowering fuel costs and emissions. Transportation of food from the north to other regions of the country and sub-Saharan Africa.” Ojulari said.

    He continued: “I took a deep interest in this pipeline because of all the stories you’ve heard and all the challenges, and I’ve had a lot of comments from different people asking, there’s a lot of money that’s gone to this pipeline, I think it’s time for us to freeze it.

    “This team has not only worked so hard to deal with significant commercial and technical issues, inviting new contractors, reviewing the issues to ensure that we have the technical solution that allowed us to cross the River Niger.

    “My commitment to you and to all parties here today is that please, our doors are open. We don’t know it all. If there are areas where we have blind sight, we will be open to discuss and we are determined to work with you to find solutions that drive Nigeria’s progress.”

    The Project Manager, AKKK Gas Project, Japhet Chairman, an engineer, said: “We have also done all the river crossings. We have done all the road crossings. Currently, management has also approved and we will expedite by introducing additional contractors to fast-track the completion of the segment work.

    “I would like to highlight the turn completion of the River Niger. It was scary going into that, but with experience from OB3, we brought in a lot of experts, consultations, with a lot of technical partners who were able to cross the River Ninja.

    “For us, the key thing is the completion of the entire pipeline project. In the coming months, we should expect a total completion, of course, it has been buried, total pre-commissioning, for segment two.”

  • NNPC signs contract agreements for $2.8bn gas pipeline project

    The Nigerian National Petroleum Corporation (NNPC) has awarded contracts for the engineering, procurement, construction, commissioning and financing of Lots 1&3 of the Ajaokuta – Kaduna – Kano (AKK) gas pipeline.

    The gas pipeline measuring 40inch x 614km and valued at $2.8 billion are awarded to a consortium of indigenous and Chinese companies under a 100 per cent contractor financing model.

    The Group General Manager, Group Public Affairs Division, Ndu Ughamadu, made this disclosure in a statement yesterday.

    The statement noted that under the terms of contract, Lot 1 with total length of 40inch x 200km stretching from Ajaokuta to Abuja Terminal Gas Station, was awarded to the OilServe/Oando Consortium.

    NNPC said that Lot 3, which runs from Kaduna Terminal Gas Station (TGS) to Kano TGS with total length of 40inch x 221km, was awarded to the Brentex/China Petroleum Pipeline Bureau (CPP) Consortium.

    According to the statement, it is envisaged that contract agreement for Lot 3, which covers 40inch x 193km stretching from Abuja to Kaduna, will be executed in the weeks ahead.

    Speaking at the event, the Group Managing Director of NNPC, Dr. Maikanti Baru, said the AKK Gas pipeline was a section of Trans-Nigerian Gas Pipeline under the gas infrastructure blueprint designed to enable the industrialization of the eastern and northern parts of Nigeria.

    The project would also enable connectivity between the East, West and North, which is currently non-existent.

    He noted that the AKK section had suffered setbacks due to scarce resources for government to fully finance the project, hence the adoption of the contractor financing model.

    “The two other pipelines, the OB3 & ELPs 2 in the Gas Master Plan blueprint, are currently at various stages of completion and are being financed directly by the Federal Government,” he said

    In his remarks on behalf of the Oilserve/Oando Consortium, Engr. Emeka Okwuosa, Chairman of Oilserve Limited, expressed gratitude to the Federal Government and the NNPC for providing the opportunities for indigenous companies to flourish in the Nigerian Oil and Gas Industry.

    He said the decision to award Lot 1 of the AKK project to an indigenous consortium speaks volume of government’s resolve to grow and encourage the attainment of the ideals of local content philosophy.

    Engr. Abubakar Nuhu, Vice- Chairman of Brentex Nigeria Limited, said the Brentex-CPP Consortium would rely mainly on the acclaimed pedigree and global expertise of CPP in pipeline construction to deliver a world class project.

    It will be recalled that the process for the award of the AKK project teed-off in July 2013 with the advertisement for tenders published by the NNPC in major national newspapers.

    After a painstaking technical and commercial evaluation process, the Federal Executive Council at its 46th meeting on December 13, 2017 approved the contract valued at over $2.8 billion.

  • NNPC orders assessment of Escarvo-Lagos gas pipeline fire 

    NNPC orders assessment of Escarvo-Lagos gas pipeline fire 

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr. Maikanti Baru, has ordered an immediate assessment of the damage caused by a fire on the Escarvos to Lagos Pipeline (ELP), a natural gas pipeline which supplies gas from Escravos region of the Niger Delta area to Lagos.

    The pipeline also supplies gas to power plants in the South West, in addition to feeding the West Africa Gas Pipeline System.

    NNPC’s  Group General Manager,  Group Public Affairs Division,  Mr.  Ndu Ughamadu disclosed this in a statement yesterday.

    The incineration of the ELP, which was built in 1989, was suspected to have been caused by a bush fire January 2, 2018 at Abakila, in Ondo State.

    NNPC firemen were drafted to the scene and were able to contain the fire from the leak point of the pipeline incident. However, the fire could not be extinguished due to the high pressure of the line.

    To put off the fire, the line would require being isolated and depressurized, which might lead to a complete shutdown of the pipeline segment for repair works to be carried out.

    The exercise will affect gas supply to customers in Ondo, Ogun and Lagos State with subsequent shutdown of the following power plants with a combined generating capacity of 1,143MW: Egbin, Lagos, Olorunshogo, PEL Olorunshogo, Ogun, Paras Power Plant, Ogun and Omotosho plant, Ondo State.

  • Rivers, Oando expand gas pipeline

    Rivers, Oando expand gas pipeline

    The Rivers State Government and Nigeria’s indigenous energy company, Oando PLC, are closing in on the completion of an 8.5 km expansion of the natural gas distribution network in the Port Harcourt Franchise Area from the Above-Ground Installation (AGI) in Trans-Amadi to BUA Sugar Refineries (BUA).

    The project is being executed by the Central Horizon Gas Company (CHGC), a Special Purpose Vehicle set up by Oando and the Rivers State Government, focused on the rehabilitation, operation, and expansion of the existing natural gas distribution network in Greater Port Harcourt City and the Trans-Amadi area.

    The pipeline’ll boost BUA’s productivity, provide substantial cost-savings and open the state for a new wave of industrialisation via natural gas utilisation.

    Oando’s gas integration strategy, includes methods of transmission and distribution to fulfill market requirements, while the gestation period for the implementation of the Nigerian Gas Master Plan elapses.

    The company has developed over 260km of gas pipelines across the country, and is also a vested player in the virtual pipeline market through a Compressed Natural Gas facility in Lagos and an ongoing Mini LNG development in Ajaokuta.

    The pioneering 20 mmscf/day liquefaction plant in Ajaokuta, is primarily directed towards fulfilling the gas supply requirement for captive power plants, embedded generation, and industrial clusters in the Northern region, as well as stranded customers in the South. Off-takers, particularly, power plants and industrial customers who currently utilise liquid fuels such as diesel and LPFO, will be able to lower energy costs by up to 40%, while significantly decreasing carbon emissions.

    The company is also spearheading several long term projects including a 400km South-West to North-West gas pipeline and a Central Processing Facility (CPF) which will serve as the primary gas gathering and processing hub in the Niger Delta.

    In its determination to build Africa’s largest sub-Saharan natural gas pipeline grid, Oando is creating access to thousands of industries in the nation’s quest to leverage gas to drive industrialisation on a large scale. The company provides gas and power solutions to over 170 industrial and commercial customers nationwide ensuring cost-savings across board, powering economic development, and engendering environmental awareness.

    Though Nigeria boasts proven natural gas reserves of 187 trillion cubic feet (TCF), the 8th largest in the world and the largest in Africa, the gas industry has stalled in realizing its true potential due to a number of challenges including the lack of a suitable long-term fiscal and regulatory framework, insufficient infrastructure, sabotage in the Niger Delta, and slow market consolidation. Analysts have continually touted gas as a means of diversifying Nigerian revenues from the usual reliance on oil.

    The CHGC expansion which will boost BUA’s productivity is scheduled for completion by the end of Q4 2017.

     

     

  • Gas pipeline project by Nigeria, Morocco to boost regional integration

    Gas pipeline project by Nigeria, Morocco to boost regional integration

    •Both countries sign 21 bilateral agreements

    To foster economic integration in the continent, Nigeria and the Kingdom of Morocco yesterday agreed to facilitate a gas pipeline project that would connect Nigeria’s gas resources with those of other countries.
    The Minister of Foreign Affairs, Dr Geoffrey Onyema, disclosed this yesterday while presenting communiqué before the visiting Moroccan King Mohammed VI and President Muhammadu Buhari at the State House, Abuja.
    He said that the gas pipeline project will accelerate energy and electrification projects across the affected member countries.
    He said: “It is a great honour and privilege to read for you a communique which outlines the strategic visions that you both have for our two countries.
    “On the occasion of the visit of His Majesty King Mohammed VI to Nigeria, and following the discussion with President Muhammadu Buhari in Marrackech, on the sidelines of the Conference of the Parties (COP-22), and also in Abuja, the Kingdom of Morocco and the Federal Republic of Nigeria decided to study and take concrete steps toward the promotion of a regional gas pipeline project that will connect Nigeria’s gas resources, those of several West African countries and Morocco.”
    The gas pipeline project, he said, would be designed with the participation of all stakeholders with a view to creating a competitive regional electricity market with the potential to be connected to the European energy markets.
    He also disclosed that Nigeria and Kingdom of Morocco agreed to develop integrated industrial clusters in the sub-region in sectors such as manufacturing, Agro-business and fertilizers to attract foreign capital and improve export competitiveness.
    At the end of the 3-day official visit of King Mohammed VI to Nigeria, 21 Bilateral Agreements were signed between Nigeria and the Kingdom of Morocco.
    Seven of the agreements were signed on Friday while the remaining 14 agreements were signed on yesterday.

  • Nigeria, Ghana back $185m gas pipeline debt settlement

    The Nigerian and Ghanaian governments have supported amicable resolution of the $185 million owed the West African Gas Pipeline Company (WAPCo) and gas suppliers by the Volta River Authority’s (VRA) of Ghana.

    The West African Gas Pipeline Company limited (WAPCo) is a limited liability company, which owns and operates the West African Gas Pipeline (WAGP). WAPCo is a joint venture between public and private sector companies from Nigeria, Benin, Togo and Ghana with a mandate to transport natural gas from Nigeria to customers in Benin, Togo and Ghana in a safe, responsible and reliable manner, at prices competitive with other fuel alternatives.

    The WAPCo Managing Director, Mr. Walter Perez, had told reporters that owing to the huge debt, gas delivery to VRA would be curtailed. The cut in gas supply to VRA, it was learnt, would negatively affect electricity supply to Ghana; hence the governments of the two countries have intervened to ensure that such action is not implemented.

    Currently, VRA and its gas shipper, N-Gas (a joint venture company owned by NNPC, Shell and Chevron that delivers gas through the West African Gas Pipeline Company (WAGPCo) to Ghana), are in discussion, with the support of governments of the two countries. The outcome of the discussion would determine if WAPCo and N-Gas would go ahead with the plan to curtail gas supply to VRA.

    Perez said: “Since August 2014, VRA has received natural gas and pipeline-related transportation services totaling USD 231 million through the West African Gas Pipeline (WAGP). As of today, VRA has paid only USD 46 million of this amount. Of the outstanding balance of USD 185 million, VRA owes USD 109 million to WAPCo with the balance being owed to the other parties in the gas supply chain.

    “ WAPCo has regularly engaged VRA, the Ghana Public Utilities and Regulatory Commission (PURC), the relevant ministries, and even the highest level of the government to find a solution to this situation before it reached crisis level.  Unfortunately, these efforts have not achieved the desired result.

    “Just one month ago, WAPCo received a formal notification from VRA’s gas shipper, N-Gas, that deliveries to VRA should be curtailed effective 16 October 2015.  In doing so, N-Gas informed WAPCo of the intent of one of its major gas suppliers, Nigeria National Petroleum Company (NNPC), to curtail gas supply as a result of N-Gas being in payment default due to the inability of VRA to settle its gas supply and gas transportation invoices.”

    He continued:“We are very certain those in positions of authority in Ghana are fully aware of this information, and we are hopeful they are taking appropriate action to prevent curtailment.  Otherwise, WAPCo is contractually obligated to curtail deliveries to VRA as of 00:00 hours on Friday, 16 October 2015.

    “WAPCo management is keenly aware and sensitive to the effect that this directive from N-Gas could have on power generation in Ghana. We find it unfortunate that the VRA debt situation has been allowed to deteriorate to the point where it now jeopardizes WAPCo’s very existence as a company, and in doing so, it also jeopardizes the only viable option of providing sufficient on-time offtake assurance for Ghana’s TEN and Sankofa developments.

    “I’d like to emphasize that we remain hopeful in spite of the current crisis as we believe the WAGP remains critical energy infrastructure for Ghana.  Further, we are firm in our belief the WAGP is vital to the on-time and lowest-cost delivery of Ghana’s indigenous natural gas resources. To that end, WAPCo will continue to dialogue with the relevant authorities and trust that WAPCo, a company in which Ghana owns significant shares, will not be allowed to go under.”

    NNPC spokesman, Ohi Alegbe, however, said the Federal Government has reached an agreement with Ghana on the modalities to settle the outstanding N33.8bn owed by the Volta River Authority (VRA) on gas supplied for power generation by a Nigerian company, N-Gaz. The highlight of the agreement is that the total sum of gas supply debt will be cleared by February 2016 at the latest, he added.

    Alegbe said the agreement was reached between a team led by the Group Managing Director of the NNPC, Dr. Ibe Kachikwu, and the President of Ghana, John Dramani Mahama, noting that VRA will pay the balance of August and September invoices by October 31 at the latest.

  • Shippers set access to gas pipeline

    •Constitutes committee to explore possibilities

    The West African Gas Pipeline Company (WAGPCo) has opened its pipeline to be accessed by independent gas shippers to maximise the potential of the facility, which  has been underused over the years.

    Its General Manager, Corporate Affairs, Mrs. Harriet Wereko-Brobby, said the management decided to open the facility so that there should be additional gas to fill it.

    Data show that the capacity of the pipeline is 474 million standard cubic feet of gas (mmscf) but the contractual volume signed with the foundation customers is 134mmscf, which is about 170 million British thermal unit Btu. British thermal unit is used to measure the energy of gas, that is, the caloric value (heat content), while the volume of gas is measured in standard cubic feet.

    She said what the company wants to achieve by opening access to the asset is to put into use a substantial part of the unused capacity. The data obtained by The Nation, shows that even if the entire foundation customers’ volume of 134mmscf is fully utilised, there is still 340mmscf unused capacity. Therefore, by opening access to the pipeline, the company tries to encourage independent gas shippers to buy gas directly from producers, that is, oil companies in Nigeria such as Shell, Chevron, Seplat, Total, among others, after which WAGPCo will transport the gas to the shipper’s destination in Togo, Benin Republic and Ghana.

    However, such shippers, according to WAGPCo, will be registered and licensed, and must meet all the necessary requirements and standards needed by the regulator, West African Gas Pipeline Authority (WAGPA).

    WAPA regulates WAGPCo as the Department of Petroleum Resources (DPR) regulates the Nigerian oil and gas industry, so before WAGPCo moves gas for a shipper, the shipper must have a licence, have the gas, demonstrate ability to meet specification, and ensures meeting all the requirements.

    Mrs Wereko-Brobby said: “What we have been doing is encouraging and working with our stakeholders, that is, those for whom we transport gas to enter into arrangement with the producers of that gas so that we would be able to fill our pipeline. Some of them in Ghana, Togo and Benin Republic, have started engaging with gas producers in Nigeria trying to get contract memoranda of understanding so that they would be able to get additional gas to fill our pipeline.

    “At the same time we are continuing our engagement with those protecting our pipeline. We have had two forums; we brought together the stakeholders, subject matter experts from different organisations, naval forces, maritime and ports authorities from different countries. They all came together, sat down and talked about what can be done and how to protect the pipeline. And they also indicated their interest in protecting the workers giving instances of pirates that are not only dangerous to WAGPCo but also all the companies that have formations in the sea. So in the sub-region and even on the ECOWAS’ level, they have assured that it is a matter of highest priority to protect the pipeline and all the nations are collaborating to do that.

    “We brought them together so that we can discuss not only the physical protection but any technological advancement that we can take advantage of.  The success of WAGPCo is very important to ECOWAS. What they feel is that if WAGPCo succeeds, that means all other efforts for regional integration can succeed, so they are very interested in WAGPCo success as a way of making sure that we will have a framework for regional integration programme.

    “We also have a committee set up right now that will set forward the programme. The committee will try and come up with different methods of protecting the pipeline and also ensuring the reliability.

    “The committee is now developing its terms of reference and the expectation is that the terms of reference will be prepared by next month. Once members of the committee come up with their terms of reference, which will be within the next six months to one year, they should have come up with a plan, which will be commenced immediately after. Some of the actions that were identified at that forum such as physical patrol have been started.”

  • Oando takes gas pipeline to Lagos CBD

    Oando takes gas pipeline to Lagos CBD

    Oando Plc has said it is extending the natural gas distribution network of its Greater Lagos Area franchise from Ijora to the Marina Central Business District (CBD).

    The project will be executed by Gaslink Nigeria Limited, one of its subsidiaries, in conjunction with Oilserv Limited. It will further increase Oando’s available gas distribution capacity of 85 million standard cubic feet per day (mmscf/d), with 55mmscf/d currently utilised.

    The venture, the firm said, will have substantial socio-economic impact on the CBD, as the availability of natural gas in those areas will attract industrial investors and businesses thereby enhancing commerce and industry in the state.

    Natural gas is a cheaper alternative to liquid fuels such as diesel and low pour fuel oil (LPFO) that have been used by industries and commercial customers to augment the epileptic power supply. The project is also expected to have a positive environmental impact as natural gas, which is more environmentally friendly, will displace diesel/LPFO as the primary fuel source in the industries and power generation plants in the areas the infrastructure extends to.

    Chief Executive Officer, Oando Gas and Power (OGP), Mr. Bolaji Osunsanya, said: “We are extremely pleased with the strides we have made thus far and our overall strategy remains focused on the aggressive expansion and growth of our asset portfolio. The extension of the Greater Lagos network further underlines our push to strengthen our market play within the vibrant gas sector.”

  • Ghana wants Nigeria to fix gas pipeline

    Ghana wants Nigeria to fix gas pipeline

    President John Mahama of Ghana has asked his Nigerian counterpart, President Goodluck Jonathan to help fix the broken West Africa Gas Pipeline.

    This, according to the Ghanaian leader, is important in the country’s bid to use Nigerian gas for power generation.

    Mahama spoke on Wednesday after meeting with President Jonathan at the Presidential Villa, Abuja.

    The Ghanaian president, who was re-elected during Saturday’s presidential election in the West African country told State House Correspondents that he want Jonathan to use his influence to get the pipelines back into operation.

    He said, “I took the opportunity to discuss with him the issue of West Africa Gas Pipeline. As you are aware, it got broken and there was an accident when they were trying to activate it. So, I want President Jonathan to use his influence to get the pipeline back into operation as soon as possible so that Ghana can continue to receive Nigerian gas to power our electricity generation.”

    President Mahama, who said he was on his way to Equatorial Guinea for the African, Caribbean and Pacific Group of States conference also said the two leaders, discussed the relationship between both countries during the short meeting.

    “This has been a very short visit. I am on my way to Equatorial Guinea for the ACP African, Caribbean and Pacific Group of states conference that is taking place there. As you know, Ghana has been the chair since 2008 and we are supposed to be handing over to Equatorial Guinea and so enroute I decided to pass through Abuja to pay my respect to President Goodluck Jonathan considering the relations between Ghana and Nigeria.

    “After election, it is significant that this is the first country I should visit just to cement the relations between our two great countries,” President Mahama told journalists.

    He also said the visit was an opportunity to condole with President Jonathan over the death of his younger brother, Chief Meni Innocent Jonathan.