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