$2.8bn AKK gas pipeline: Senate queries delay in execution

The Nigerian Senate Committee on Local Contents has expressed discontent over the delay in the execution of the $2.8 billion Ajaokuta-Kaduna-Kano Gas Pipeline Project.

Brentex CPP Ltd., the local firm handling the project, was told on Tuesday to speed up on the $1.27 billion component of the project by the Senate committee chaired by Senator Natasha Akpoti-Uduaghan.

The committee tackled the management of Brentex CPP Ltd., on the $127 billion stations component of the contract during an interactive session with them and insisted that the 10th Senate would not accept excuses under any guise.

While answering questions, the chairman of Brentex CPP Ltd., Sani Abubakar, lamented to the committee that part of the delay in the execution of the contract is the attempt by the Nigerian National Petroleum Company Ltd., NNPCL, to de-scope the $1.27 billion station component of the contract.

He said: “NNPCL has written us that they are de-scoping the $1.27 billion stations TGS component of the contract and we have been in discussion with them for the past 18 months. So the delay in the execution of the contract is not from us but from NNPCL.”

But the chairman of the committee, in her response, told the Brentex chief executive that, based on information at her disposal through documents submitted, NNPCL is making the move to take the stations component of the contract from Brentex due to the delay in execution.

“Should I tell you, you are refusing to mention something? The reason why NNPCL is considering descoping is that they are not satisfied with the pace of work.

“Let’s be very honest, they said it was supposed to be completed in 2022; it wasn’t completed, and they gave you the first extension to 2023 and even recently extended it again to complete everything by May 2025.

“To the very best of every stakeholder’s knowledge, the stations are in your control because they still make up part of the $1.27 billion, as you said and the only person delaying is you.”

Natasha told the company to submit every correspondence between them and NNPCL.