AKK gas project at 43% completion, NNPC targets 5gw power from it
By Jeph Ajobaju, Chief Copy Editor
Vice President Yemi Osinbajo has confirmed the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) pipeline project is at 43 per cent completion, and the Nigerian National Petroleum Company (NNPC) says when completed, gas from it would help generate additional 5 gigawatts of electricity to the national grid.
Osinbajo made the disclosure at the 2023 edition of the Nigeria International Energy Summit (NIES) in Abuja, where he was represented by the Secretary to the Government of the Federation (SGF), Boss Mustapha.
He said the administration of President Muhammadu Buhari has done a lot to reform the oil and gas industry, particularly with the enactment of the Petroleum Industry Act (PIA) 2021.
Osinbajo recounted that at the inception of the administration in 2015 the petroleum industry was faced with several challenges and was not where it ought to be.
“We dismantled some of those challenges. And a lot of people in this room work closely with us to make things happen.
“Energy was and would remain a top priority of this administration till my last day in office. That is the reason we paid close attention to a lot of reforms in the sector,” he said.
“We embarked on all these reforms not just because it is good for the energy industry, but because it is also good for the overall economy. And our efforts indeed helped grow our economy and created a lot of jobs.”
He announced the government raised N200 billion and $7 million (N3.2 billion using import and export window of N460.93 to a dollar) from the marginal oil field licensing round held last year.
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Boosting gas supply
NNPC Group Chief Executive Officer Mele Kyari, said when completed, the AKK pipeline would boost gas supply to factories and industries along the corridor, and power generation would improve by an additional 5gw, per Vanguard reporting.
“NNPC Limited is also investing heavily in critical gas infrastructure such as the Ajaokuta-Abuja-Kano (AKK) gas pipeline and the OB3 gas interconnector to support 5 Bscf/d of domestic gas utilisation including 5 GW of power generation capacity by developing power plant projects along the AKK pipeline corridor and across the country to complement the existing ones,” said Kyari, represented by NNPC Executive Vice President (Gas, Power and New Energy), Mohammed Ahmed.
He expressed optimism “the recent spud-in of the EBENYI – A in Nasarawa State will yield positive results as well.”
Independent Petroleum Producers Group (IPPG) Chairman Abdulrazaq Isa urged the in-coming government to urgently tackle challenges in the oil industry and immediately end fuel subsidy.
He also counselled “improving investor confidence through effective implementation of the PIA and strengthening of regulatory institutions and dealing with crude theft across the Niger Delta, which still lingers despite recent successes recorded by the federal government.”
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