The Nigeria National Petroleum Company Ltd (NNPCL) has put pen to paper on a Memorandum of Understanding (MoU) with China Engineering and Machinery Corporation (CEMC) for the co-founding of the Gwagwalada Independent Power Plant project.
The company disclosed this in a post on X where it explained the importance of the proposed IPP on the economy.
According to the post, NNPC Ltd.’s Executive Vice President, Gas Power & New Energy, Mr. Olalekan Ogunleye, and CMEC Nigeria’s Chairman, Mr. Zhang Daguang, signed the agreement on behalf of their respective companies.
It noted that the 350MW GIPP Phase 1 Project, also known as the Abuja IPP, is one of the major anchor projects of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project, aligning with Nigeria’s Gas Master Plan infrastructure blueprint.
The post reads, “This Thursday, in Beijing, China, NNPC Limited and China Engineering & Machinery Corporation (CMEC) signed a Memorandum of Understanding (MoU) for the co-funding of the Gwagwalada Independent Power Plant (GIPP) Phase-1 Project.”
“NNPC Ltd.’s Executive Vice President, Gas Power & New Energy, Mr. Olalekan Ogunleye and Chairman of CMEC Nigeria, Mr. Zhang Daguang, signed the agreement on behalf of their respective companies.”
“Also known as the Abuja IPP, the 350MW GIPP Phase 1 Project is one of the key anchor projects of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project which is in line with Nigeria’s Gas Master Plan infrastructure blueprint.”
Once completed, the project is anticipated to boost power generation, create jobs, reduce gas flaring, and promote industrial development.
What you should know
The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project, led by the Nigerian National Petroleum Company (NNPC) Limited, aims to strengthen Nigeria’s gas pipeline infrastructure in response to rising power demands and the need for gas-based industries across the country especially in Abuja and other parts of Northern Nigeria.
The $2.8 billion large-scale project includes a 40-inch, 614-kilometer pipeline that runs from Ajaokuta to Kano, featuring intermediate and terminal gas facilities along its route.
The pipeline will extend from Ajaokuta in Kogi State to Kano, incorporating key intermediate and terminal facilities, as well as other necessary equipment, to ensure the efficient transport of natural gas to off-takers in Abuja, Kaduna, and Kano.
The AKK pipeline is poised to reduce deforestation rates by offering an alternative energy source for power generation, cooking, transportation, and industrial use in major regions such as Abuja, Kaduna, and Kano, reshaping Nigeria’s energy sector.
The NNPC projects the project completion date around Q1, 2025.
