A lay-out of the financiers for the 614 km Abuja, Kaduna Kano pipeline, indicates huge Chinese involvement and negotiations have reached concluding stage.
This was contained in a statement signed by its spokesman, Mr Ndu Ughamadu, in Abuja, on Wednesday.
According to the statement, Mikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), who was represented by Saidu Mohammed, Chief Operating Officer, Gas and Power, at a conference in Barcelona, Spain, revealed that the Nigerian government is setting out modalities for the repayment of the $2.8bn project.
85 per cent of the funding will be provided by financial institutions such as: Industrial and Commercial Bank of China, Bank of China, Infrastructure Bank of China and Sinosure, while 15 per cent will be made available by the contractors: Oilserve/Oando consortium and Brentex/China Petroleum Pipeline Bureau consortium.
In the statement, Baru was quoted as saying the AKK pipeline will connect the North, West and Eastern parts of the country with gas supply and industries will spring up as a result.
“Once you have the whole nation covered with a gas grid, industries will naturally spring up along the way and litter the entire country. That is our target in the long run,” Baru said.
The NNPC boss, who said Nigeria cannot exhaust its gas reserves with 50 years of generating 40,000 mw of power annually, noted that NLNG’s new Train7 project will further improve domestic consumption of the energy resource:
“We cannot consume our gas resources in the next 50 years, even if we generate as high as 40,000 megawatts of power. We are happy that the NLNG is a credible company capable of competing in the international arena,” he boasted.
A final investment decision on the new liquified gas processing plant is expected to be made in December. The project will see Nigeria’s liquified gas processing capacity swell from 22 million tonnes per annum to 30 mtpa.
The hope for Nigeria’s industrialisation dream, however lies with an increased and steady consumption of its gas resources, which has a multi-layered use in several industries.