The Assistant President and Board Member of the China National Petroleum Corporation (CNPC), Wang Shihong have pledged on behalf of the corporation’s six subsidiaries to collaborate with the Nigerian National Petroleum Corporation (NNPC) for its $2.8 billion Ajaokuta-Kaduna-Kano (AKK) pipeline project.
Shihong assured NNPC’s Group Managing Director (GMD), Dr. Maikanti Baru that CNPC remains committed towards securing funds for the successful implementation of the pipeline project. Shihong said
“We are in full support of Nigeria’s quest to deliver the AKK project. We are working relentlessly towards securing funding for the project based on regulations and policies of Chinese financial institutions.”
On his part, Dr. Baru said the corporation seeks to maximise the construction work of the project before the end of the year, adding that NNPC is looking forward to the quick resolution of the financing agreements.
NNPC noted that the AKK pipeline project funding received a boost during a high-level meeting between the NNPC and CNPC management held on the sidelines of the Forum on China-Africa Cooperation (FOCAC) Summit in Beijing, China.
Why NNPC is implementing the AKK project
The AKK gas pipeline project which is described as the single biggest gas pipeline in the history of oil and gas operations in Nigeria is expected to enable connectivity between the East, West and Northern region of the country.
The project which cost about $2.8 billion, would also enable gas supply and utilisation to key commercial centres in the Northern corridor of Nigeria.
NNPC, had in August, announced plans to float about 40% of its shares on the Nigerian Stock Exchange (NSE) when President Muhammadu Buhari grants assent to the Petroleum Industry Governance Bill (PIGB).
The corporation was established on April 1, 1977. In addition to its exploration activities, the corporation has powers and operational interests in refining, petrochemicals and products transportation as well as marketing.