Chinese state-held oil and gas company China National Petroleum Corporation (CNPC) has agreed to provide funds for Nigerian National Petroleum Corporation’s (NNPC) US$2.8bn Ajaokuta-Kaduna-Kano (AKK) gas pipeline project in Nigeria. Once built, the 3.5 bcf/d (36 bcm/year) facility will spread across 614 km starting from Ajaokuta, pass through Abuja and Kaduna, before ending at the terminal gas station in Kano.
The pipeline project forms the first phase of the Trans-Nigeria Gas Pipeline (TNGP) project and will be divided in three phases; the first one (US$855m) will stretch across 200 km from Ajaokuta to Abuja, while the second one (US$835m, 193 km) will run from from Abuja to Kaduna and the third one from the Kaduna Terminal Gas Station (TGS) to Kano TGS (US$1.2bn, 221 km). It will enable to connect the North, West and East regions and will also supply the West African Gas Pipeline (WAGP). The project's construction is set to commence in October 2018.
85% of the capital costs will be secured by Industrial and Commercial Bank of China (ICBC), Bank of China, and Infrastructure Bank of China while Sinosure, China’s Export Credit Agency (ECA) will provide insurance cover. The remaining 15% will be funded by the project's contractors.