AKK Gas Pipeline Project

NNPCL Not Responsible For AKK Gas Pipeline Project Delay- Contractor Clarifies Misleading Reports

Brentex CPP Limited (BCL), one of the contractors of the Ajaokuta – Kaduna – Kano ( AKK) Gas Pipeline Project has dismissed reports in some section of the media blaming the delay of the AKK Gas Pipeline Project on the Nigerian National Petroleum Company Ltd.

The Company said it has received the support of the Nigerian National Petroleum Company Ltd to deliver its segment of the AKK Gas Pipeline Project.

The company has also said that the NNPCL is not responsible for the delay in the 614-kilometre/40-inch gas pipeline project.

Brentex said this while clarifying reports of its appearance at the hearing of the Senate Committee on Local Content being chaired by Senator Natasha Akpoti-Uduaghan on Tuesday, 16th July, 2024.

The reports had claimed that the Chairman of Brentex CPP Limited, Sani Abubakar told the committee that attempts were being made by the NNPCL, to descope the $1.27bn station component of the contract.

The report had quoted Abubakar as saying ” NNPCL has written us that they are descoping the $1.27bn Terminal Gas Stations ( TGS )component of the contract and we have been in discussion with them for the past eighteen months. So, the delay in execution of the contract is not from us but NNPCL.”

But the company in a statement absolved the NNPCL of all wrongdoings claimed in the report.

The company explained that the Committee asked BCL to confirm its commitment to deliver its segment (318km x 40” segment 2,) of the project by first quarter of 2025.

In response, the company said it told the committee that it has completed over 80 per cent of actual pipeline construction works, including crossings.

BCL said it is working with NNPCL to deliver all the stations, by the first quarter of 2025, except 2 Terminal Gas Stations (TGS), which are under descope conversation between NNPCL and BCL.

However, BCL did not provide a reason why the NNPCL considered the option of descoping 2 Terminal Gas Stations (TGS).

The company clarified that the value of $1.27bn mentioned in some reports of Tuesday’s interaction at the Senate is the entire value of the Engineering, Procurement and Construction (EPC)-Segment 2- contract, and not the value of the two TGS.

It also said the two TGS stations represent only about ten per cent of its contract value.

BCL said, “We are one of the two contractors, and there are two segments of the project. BCL is only the contractor for segment 2 of the AKK project-Sarkin Pawa in Niger State to Tamburawa in Kano State.

“For the purpose of emphasis, BCL wishes to add that it is very proud with the progress of its work. Aany check will confirm that BCL’s performance is easily the best in the history of Government-funded pipeline construction projects in Nigeria.

“Furthermore, BCL has always recognised the support it receives from the leadership of the NNPCL, without which we may have had no magic to deliver on this project.”

NewsNGR had reported that the Group Chief Executive Officer of the NNPCL, Mr. Mele Kyari assured Nigerians that the project would be delivered by the end of the first quarter 2025.

“Without promising too much, we assure you that this Project will be delivered on schedule. Our mission is to work towards delivering it by December this year.

“But we are confident this project will be delivered by 1st Quarter of 2025,” Kyari informed three visiting Ministers during a site visit.