Oando PLC (referred to as “Oando” or the “the Company”), is pleased to announce to the company’s attendance as a consortium partner at the flag-off ceremony for the construction of the $2.8billion, 40 inch by 614km Ajaokuta-Kaduna-Kano Gas Pipeline Project (the “AKK Pipeline”), by the President of the Federal Republic of Nigeria, Muhammadu Buhari GCFR on
Mrs Alero Balogun, Head, Corporate Communications said in a statement in Lagos on Tuesday .
The AKK Pipeline Project, championed by two consortia comprising select indigenous and international companies commenced in 2013 with the announcement for tenders by the Nigerian National Petroleum Corporation (NNPC). In April 2018, the Company announced that following an extensive due diligence and bid process, the Oilserv-Oando PLC consortium was awarded the Engineering, Procurement, and Construction (EPC) mandate for segment 1, accounting for 40” by 303.4km linear pipeline system for the Ajaokuta to Kaduna portion of the AKK Pipeline Project by the NNPC.
The AKK Pipeline Project which will originate from Ajaokuta in Kogi state, traversing Abuja, Niger, Kaduna states, finally terminating in Kano state is the largest gas pipeline project in Nigeria’s history.
The project, expected to be completed within a 24-month timeline, is a 614km section of the Trans-Nigeria Gas Pipeline (TNGP) with the capacity to transport about 2.2billion cubic feet of gas per day. It will boost domestic utilization of natural gas for Nigeria’s social economic development when completed.
Oando PLC Awarded Engineering, Procurement and Construction (EPC) Mandate to Develop Ajaokuta-Kaduna-Kano Gas Pipeline Project by the Nigerian Petroleum Corporation (NNPC)
On April 19, 2018 , A two party consortium consisting of Oando PLC (“Oando”), in conjunction with its midstream affiliate, Axxela Limited (“Axxela”) (formerly known as Oando Gas & Power) and Oilserv Limited, has been awarded the Engineering, Procurement, Construction (EPC) mandate for the Ajaokuta – Abuja portion (Lot 1) of the Ajaokuta-Kaduna-Kano Pipeline system (the “AKK Pipeline”) by the Nigerian National Petroleum Corporation (“NNPC”).
The contract award follows an extensive due diligence process conducted by the NNPC following a submission by Oando and Oilserv in 2013 in response to an Expression of Interest for a contractor-financed EPC development of the AKK Pipeline Project.
Oando’s Group Chief Executive and Axxela Chairman, Jubril Adewale Tinubu, said: “Our long-standing achievements and aspirations in the gas and power sector are testament to our desire to continuously provide innovative and integrated energy solutions across sub-Saharan Africa. The award of the Ajaokuta – Abuja portion of the AKK Pipeline Project also underscores our position as the partner of choice for investors, regulators, and key stakeholders as gas continues to gain prominence as a key driver for the region’s economic empowerment.”
The US$727million Ajaokuta-Abuja Pipeline development is a 215km gas infrastructure with associated facilities such as Metering/Terminal Gas Station, Pigging Station, Block Valve Stations etc.
The development of the AKK grid is a manifestation of the Gas Infrastructure Blueprint in the Nigerian Gas Master Plan, which seeks to extend the existing gas transmission network and achieve connectivity between the East (gas reserves) and the North (demand centres); serve new customers in the Northern regions; and bridge the shortfall in the Western region.
Commenting on the contract award, Axxela CEO, Bolaji Osunsanya, said: “As forerunners in the sector, we remain actively committed to the long term realisation of the Nigerian Gas Master Plan. The development of critical gas pipeline infrastructure and a far-reaching national grid remains pivotal to the country’s industrialization and economic empowerment. Consequently, the implementation of the AKK Pipeline Project will enable power-starved communities across the northern region have greater access to electricity, while providing stranded commercial and industrial customers with a cleaner and more efficient source of energy.”
In a bid to aggressively expand its operational footprint and further create value-adding opportunities in the gas and power space, Oando divested a portion of its erstwhile midstream vehicle, Oando Gas & Power to Helios Investment Partners LLP (“Helios”), a premier Africa-focused private investment firm. Oando Gas & Power subsequently rebranded as Axxela.
Axxela remains the pioneer developer of Nigeria’s foremost natural gas distribution network and the largest private sector gas distributor.
The company is also extending its gas advantage to identified customers in neighbouring Benin, Togo, and Ghana with a target to deliver over 100 million standard cubic feet per day (“mmscf/d”) via its newly acquired shipper status on the West Africa Gas Pipeline to fuel power plants, commercial entities and residential homes.
According to NNPC, awards for the three lots on the AKK Pipeline Project were made to three selected consortia to facilitate a timely delivery of the gas network.
