By Teddy Nwanunobi
The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has assured that the ongoing 614-kilometres Ajaokuta-Kaduna-Kano (AKK) gas pipeline project would be delivered on schedule, create prosperity through massive job opportunities and guarantee peace for the country.
Valuechain reports that the project is estimated to cost $2.8 billion.
Kyari’s statement would be reassuring to millions of Nigerians, following earlier information that China was frustrating Nigeria’s aspirations to boost the domestic utilisation of its gas.
There were reports that the Chinese lenders, who had pledged to offer $2.5 billion of the estimated cost of the project, were delaying to come up with the fund for the project, which is central to Buhari’s plan to develop gas resources and boost development in northern Nigeria.
The reports further claimed that the delay may have allegedly forced the NNPC to seek for the sum of N1 billion to continue work on the project.
But Kyari, who spoke on Thursday at the Gas Sector Stakeholders’ Forum which was held in Kano, Kano State, said it would also serve as a gas supply link to other African countries and Europe upon completion.
Kyari’s comment, according to a statement by the Group General Manager, Group Public Affairs Division of the NNPC, Dr. Kennie Obateru, was delivered from a paper titled: ‘The AKK as an Economic Development Game-Changer – NNPC’s Vision, Contributions, & Plan Forward’.
He stated that the AKK gas project would help revamp about 232 industries creating massive employment opportunities and prosperity for the people.
“This project has been on the drawing board for 30 years, and the dream was to have gas delivered to Europe across the Trans-Sahara route. What we are seeing today would deliver at least 2billion standard cubic feet of gas to the domestic market at the first instance with the potential to increase it. What this means is that it will debottleneck the gas supply network in the entire country,” Kyari informed stakeholders at the Gas Sector Stakeholders’ Forum, with theme: ‘Optimising the Economic Development Capacity of Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project’.
He said the AKK gas project would also lead to the development of three Independent Power Plants (IPPs) in Abuja, Kaduna and Kano.
He added that the IPPs would boost electricity supply and promote the growth of small and medium scale enterprises in Nigeria.
“I want to state clearly that this gathering would not have been possible, if we don’t have a line of sight to the completion of the AKK gas pipeline project. This is possible because of the clear direction that Mr. President has shown on the need to deepen domestic gas consumption with a view to creating prosperity out of the enormous gas resources we have as a nation. He has given us all the necessary support and incentives to deliver on this project,” he stated.
Kyari said the AKK gas project would also boost the Agricultural, Industrial, Manufacturing and Power Sectors for the overall growth of the nation’s economy.
He averred that the AKK gas pipeline project was in sync with the aspiration of the Federal Government to reduce the nation’s carbon footprint in line with the global quest to arrest global warming and climate change and in furtherance of the Decade of Gas programme.
According to him, gas is a key driver of prosperity all over the world and it cannot be different in Nigeria, stressing that the extensive industrial layout in the Otta area of Ogun and Lagos States is anchored on the gas supply by the NNPC and its partners which is creating jobs and other opportunities for people.
In his keynote address, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said the Gas Sector Stakeholders Forum would ensure collaboration amongst stakeholders geared towards kick-starting the required activities that would guarantee full usage of the gas to be delivered through the AKK pipeline when completed.
“Today’s event reinforces our commitment to realising the inherent potentials of gas usage as a national catalyst for achieving economic diversification from crude oil and as a transition fuel from fossil of today to the renewable energy of tomorrow,” Sylva submitted.
The event had in attendance major stakeholders in the oil and gas value chain and the Governor of Kano, Alhaji Abdullahi Ganduje, while the Governors of Nasarawa, Niger, Kaduna, the Minister of Finance and Alhaji Aliko Dangote joined virtually.
The Governor of Kogi State sent a representative.