Nigeria has officially launched the construction of the Ajaokuta-Kaduna-Kano gas pipeline project. The AKK gas pipeline will deliver 3.5 bcf/d (99 mcm/d or 36.1 bcm/year) of gas from several gas projects in the south of the country. In a first phase, it will deliver 2.5 bcf/d (57 mcm/d or 20.7 bcm/year) to domestic customers. Developed by the Nigerian National Petroleum Corporation (NNPC) using a build and transfer model, the pipeline, which links the south-west of Nigeria to the North, is part the Trans-Nigeria Gas Pipeline (TNGP) project, which is scheduled for commissioning in 2020, and the Trans-Sahara Gas Pipeline System, connecting Nigeria to Algeria.
In March 2020, the government issued a sovereign guarantee to back 85% of the US$2.6bn construction cost. The guarantee will be funded by a 15-year loan from the China Export and Credit Insurance Corporation (Sinosure). The remaining 15% will be financed by the Nigerian National Petroleum Corporation (NNPC). In November 2019, the NNPC (Nigerian National Petroleum Corporation) secured a US$1.16m grant from the United States Trade and Development Agency (USTDA) for the 1,350 MW Abuja IPP gas-fired power plant (Nigeria), which would be supplied by the Ajaokuta–Kaduna–Kano (AKK) gas pipeline. In February 2020, the Nigerian government approved the Nigerian Gas Transportation Network Code (NGTNC), a contractual framework for gas network operators and gas shippers. Among the NGTNC main contributions is the open and competitive access to gas infrastructure. Players are given 6 months from 10 February 2020 to migrate from existing Gas Transportation Agreements to the NGTNC.