The process for the construction of 650 kilometres northern gas
pipeline that would run from Ajaokuta in Kogi State to Kano has begun,
the Nigerian National Petroleum Corporation (NNPC) has disclosed.
The
Group Managing Director of the NNPC, Dr. Maikanti Baru, who stated this
yesterday in Abuja at the 2017 edition of the annual Society of
Petroleum Engineers (SPE) Oloibiri Lecture Series and Energy Forum
(OLEF), explained that the corporation has tendered and was expecting
contractor financiers to take up the construction of the project.
Baru
stated that the tender processes for the construction of the line would
be concluded by the end of the second quarter of 2017, after which
preferred bids who would recoup their investments from the operations of
the line ought to be announced.
The 2017 OLEF had as its theme
“Domestic Gas Utilisation in Nigeria: From Producers to Users.” The
President of the Nigerian Gas Association (NGA), Mr. Dada Thomas was the
lead speaker.
Baru said the corporation would improve efforts on
the construction of Ajaokuta to Kano gas line, adding that it would soon
complete the 123 kilometres East-West Obiafo/Obirikom to Oben (OB3)
pipeline and looping of the Escravos-Lagos gas pipeline from Warri to
Lagos.
“The
Ajaokuta-Abuja-Kaduna-Kano pipeline is currently on tender. This
project would soon be awarded under a contractor-financing scheme. The
pipeline is a typical example of public private partnership and it is
being tendered and would be funded by partners who would recover their
investments from the operations of the pipeline,” said Baru.
The
line from its project schedule is expected to run 187 kilometres from
Ajaokuta to Abuja, 193 kilometres from Abuja to Kaduna, 65 kilometres
from Kaduna to Zaria and then the rest from Zaria to Kano.
Baru
also disclosed that if not quickly addressed, the current operational
challenges experienced in the nation’s power sector could limit gas
generation companies (Gencos) from increasing their output to 6,000
megawatts (MW) of electricity by the second quarter of 2017.
According
to him, while the Gencos would be able to increase their outputs due to
improved gas supplies to them, however, the operational inadequacies of
the Transmission Company of Nigeria (TCN) and electricity distribution
companies (Discos) could prevent the nation from achieving this.
He
said: “As of today, there is enough gas to generate about 4,800MW and
6,000MW by Q2 2017 based on our gas supply plan, but the power sector is
currently struggling to evacuate 4,500MW power due to the incessant
rejection of allocated load and transmission line constraints by the
Discos
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