Nigeria’s state oil firm awards gas pipeline deals to a consortium of indigenous and Chinese companies

Nigeria’s government has awarded the contract of two gas pipeline projects to a consortium of indigenous and Chinese companies, as part of three gas pipeline proposed projects of the country’s state oil company –the Nigerian National Petroleum Corporation (NNPC).

The two awarded contracts are said to be worth over $2.8 billion in total, though Bloomberg reported that the amount for each project was not provided.

Oando PLC and OilServe were awarded the project of constructing a 200 km expanse of the 614km Ajaokuta-Kaduna-Kano pipeline and stations, NNPC revealed in a statement on Friday.

NNPC also said the second project would be executed by China Petroleum Pipeline Bureau and Brentex, who were jointly awarded the contract. The project covers another 200 km stretch of the Ajaokuta-Kaduna-Kano pipeline and stations.

NNPC spokesperson, Ndu Ughamadu said “the AKK Project is a section of the Trans-Nigerian Gas Pipeline under the Gas Infrastructure Blueprint, designed to enable industrialization of the Eastern and Northern parts of Nigeria,” adding that “the project will also enable connectivity between the East, West, and North, which are currently not in existence”.

Though details of the third contract were not provided, NNPC however noted that the contract would be awarded in weeks to come.

Pipeline Vandalism in Nigeria

Oil and Gas production in the oil-dependent nation consists of 386 oil fields, 2800 producing oil wells, and 3 refineries. Vandalization of oil and gas pipelines facilities, however still remains the single most critical challenge facing the industry.

According to NNPC, Pipeline vandals have complicated the free flow of petroleum products and crude supply in its pipeline system, leading to a colossal loss of at least N174.57 billion in product and repairs of products pipelines over the past 13 years.

With faulty and corrosive pipelines in the country, deterioration of pipelines used in transportation networks, makes these pipelines vulnerable to punctures, breaks and exposure for vandals with the sole purpose of stealing petroleum products.