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%.

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