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

China National Petroleum Corporation (CNPC) has assured the Nigerian National Petroleum Corporation (NNPC) of its unflinching commitment towards securing $2.8 billion funding for the successful financing and subsequent execution of the Ajaokuta-Kaduna-Kano (AKK) pipeline project.

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:

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

China National Petroleum Corporation (CNPC) has assured the Nigerian National Petroleum Corporation (NNPC) of its unflinching commitment towards securing $2.8 billion funding for the successful financing and subsequent execution of the Ajaokuta-Kaduna-Kano (AKK) pipeline project.

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