AJAOKUTA-KADUNA-KANO(AKK) GAS PIPELINE ECONOMIC BENEFITS IN NIGERIA

The Ajaokuta–Kaduna–Kano Natural Gas Pipeline (AKKP) is a pipeline planned to transport natural gas from Ajaokuta, in Kogi State to Kano in Kano State, through several states and urban centers, as part of the Trans Nigeria Gas Pipeline. Construction of the AKKP commenced in July 2020.

Location:

The pipeline originates in Ajaokuta and proceeds in a general northeasterly direction through Abuja Federal Territory, Kaduna, to end at Kano a total distance of approximately 614 kilometers.

Background:

This pipeline is intended to establish a connection between pipeline networks in the eastern, western and northern regions of Nigeria. The project strives to utilize the country’s abundant natural gas resources to sustainably supply gas to northern Nigeria. The development is expected to reduce the quantity of gas flared in the country’s oil fields and thus improve air quality. The Nigerian National Petroleum Corporation (NNPC), announced tenders for this project in July 2013. The Cabinet of Nigeria approved the project in December 2017.

THE ECONOMIC BENEFITS OF AKK GAS PIPELINE IN NIGERIA

These projects are fundamental to our desire to industrialize and energize the entrepreneurial spirit that is ever present in our population. Enumerating the benefits of the project, billed to be completed in two years,

1. It will provide gas for generation of power and for gas-based industries which would facilitate the development of new industries.
2. It will also ensure the revival of moribund industries along transit towns in Kogi State, Abuja (FCT), Niger State, Kaduna State and Kano State.
3. It has significant job creation potential both direct and indirect, while fostering the development and utilization of local skills and manpower, technology transfer and promotion of local manufacturing.’
4. Upon completion, the project would enable the injection of 2.2bscf/d of gas into the domestic market and facilitate additional power generation capacity of 3,600MW.
   
   

WHAT IS GACN’s IMPACT AS SOLE STRATEGIC GAS AGGREGATOR?

The GACN, in its ten years of operation, has helped to develop the Nigerian domestic gas market. The GACN introduced a standardized template Gas Sales Aggregation Agreement (GSAA) into the market. This template undergoes periodic review by stakeholders to reflect market realities. 85% of the current total domestic gas supply portfolio is now under GACN’s management. GACN has made disbursement of over N136billion gas payment dispute-free through the price aggregation management software. GACN ensured adequate supply to GBIs such as Indorama fertilizer plant and Dangote fertilizer plants. GACN is currently facilitating development of 3 mini Liquefied Natural Gas (LNG) projects for domestic consumption. GACN is also supporting direct gas supply to embedded and captive Independent Power Plants (IPPs) based on 100% payment performance.The volume of operationalized GSAAs as at 2020 stands at 858MMscfd. These are just a few key achievements amongst many.

Natural Gas Value Chain Infrastructure for Midstream and Downstream Sector