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Chinese firm wins $949m gas pipeline project from the NNPC

Nairametrics by Nairametrics
May 8, 2017
in Uncategorized
Buhari Assures China Of Speedy Completion Of Mambilla Power Project, Others
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Nairametrics| The China National Petroleum Corporation Engineering Co., Ltd reports that it has won a Natural Gas pipeline project in Nigeria. The company confirmed the deal via a press release which can be found here.

Here is what we know about the deal;

  • The China National Petroleum Corporation Engineering Co via its subsidiary, China Petroleum Pipeline Bureau Engineering Co., Ltd.  and Brentex Petroleum Services Limited (Brentex) got a contract to build the Ajaokuta-Kaduna-Kano (AKK) Natural Gas Pipeline Project Kaduna-Kano Section.
  • The project is one part of an East West Gas project commissioned by the NNPC earlier this year and valued at about $5 billion.
  • This part of the project is said to be worth about $949 million
  • The project was awarded by the NNPC under a contractor financing scheme.
  • The Kaduna-Kano pipeline is AKK natural gas pipeline project and will include a 40-inch pipeline 221 km, 2 station and 7 valve room and its ancillary facilities.
  • The project is expected to help supply gas to power plants located along that corridor.
  • For example, the Kaduna State Government estimates that the proposed project would help energise the 215 megawatts Kudende Power Plant and provide energy for a proposed fertiliser company to be sited in the state
  • According to the award letter, the consortium will assume the design, procurement, construction and transportation of the Kaduna-Kano pipeline
  • Annual operating income from the project is estimated at 12.93%.
Tags: Business NewsNNPC Nigeria NewsOIl and Gas News
Nairametrics

Nairametrics

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

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