Construction of a major gas pipeline in Nigeria is set to begin in earnest following the awarding of the contract.
Nigeria National Petroleum Corporation (NNPC) announced Friday that it has awarded a contract of the $2.8 Ajaokuta-Kaduna-Kano Gas Pipeline effectively allowing work to start on a project that has been in the works for years.
Tenders for the 614km gas project were advertised in 2013 in Nigerian major newspapers.
Read:Nigeria issues Green Bond to boost renewable energy projects
NNPC spokesman, Mr Ndu Ughamadu, said on Friday the project is 100 percent contractor-financing model and has been signed with a consortium of local and Chinese companies.
He said that the Ajaokuta-Kaduna-Kano Gas Pipeline and Stations Project will comprise Lots 1 and 3, measuring 40inch x 614km.
“Under the terms of contract, Lot 1, with total length of 40 inch x 200km stretching from Ajaokuta to Abuja Terminal Gas Station (TGS), was awarded to the OilServe/Oando Consortium.
“Lot 3, which runs from Kaduna TGS to Kano TGS with a total length of 40inch x 221km, was awarded to the Brentex/China Petroleum Pipeline Bureau Consortium,” he added.
The gas pipeline project is a section of the Trans-Nigerian Gas Pipeline under the Gas Infrastructure Blueprint designed to bolster industrialisation of the Eastern and Northern parts of Nigeria.