Chinese firm to help Nigeria raise $2.8 billion for the execution of the country's single largest gas pipeline

The gas pipeline is expected to cost about $2.8 billion for the project and it is described as the single biggest gas pipeline in the history of oil and gas operations in Nigeria.

The assurance came during a high-level meeting between the NNPC's GMD, Maikanti Baru and the CNPC Management at the sidelines of the Forum on China-Africa Cooperation (FOCAC) Summit in Beijing, China, on Monday, August 4, 2018.

Ndu Ughamadu, NNPC's spokesperson, said the financing for the gas pipeline is expected to cost about $2.8 billion for the project, described as the single biggest gas pipeline in the history of oil and gas operations in Nigeria.

"While 85% of the money is expected to be funded by the financiers which include Industrial and Commercial Bank of China (ICBC), Bank of China, and Infrastructure Bank of China with Sinosure, China’s Export Credit Agency (ECA) providing insurance cover, the remaining 15% will be provided by the contractors which include Oilserve/Oando consortium, as well as Brentex/China Petroleum Pipeline (CPP) Bureau consortium,” the statement reads in part.

Wang Shihong, the Assistant President and Board Member of the CNPC,  said his company placed a very high premium on the AKK Project, describing it as the beginning of several collaborations between both corporations.

Responding, Dr Baru stated that the AKK Project was dear to Nigeria, adding that while at the FOCAC Summit, President Buhari reiterated the potentials of the project to strengthen Nigeria-China relations.

He added that the NNPC was looking forward to a successful close-out of the project’s financing towards official ground breaking ceremony in October, this year.

“We want to maximize the construction work before the end of the year. We are hoping for the quick resolution of the financing agreements so that we will kick-start the project in October, when the dry season begins,” Baru added.

Ajaokuta-Kaduna-Kano (AKK) pipeline project

The AKK gas pipeline will enable connectivity between the East, West and North that is currently non-existent.

It will also enable gas supply and utilization to key commercial centres in the Northern corridor of Nigeria with the attendant positive spin-off on power generation and industrial growth.

This agreement and many others were part of what the Nigerian delegation at the Forum on China-Africa Cooperation (FOCAC) Summit in Beijing, sealed with the Chinese government so far.

Also from Business Insider Sub-Sahara Africa:

Our newsletter gives you access to a curated selection of the most important stories daily.

Welcome to the Pulse Community! We will now be sending you a daily newsletter on news, entertainment and more. Also join us across all of our other channels - we love to be connected!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Pulse Influencer Awards 2022 is Live!

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Dance

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job