In a major development, the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) gas pipeline project has finally crossed the River Niger, an axis that had seriously hampered the planned completion of the project on schedule.
It was learnt that the crossing was done through the deployment of high technology facilities by Oilserv Limited, the contractors handling section A of the critical gas infrastructure.
The River Niger crossing had posed one of the most critical engineering challenges in the completion of Nigeria’s ambitious AKK gas pipeline. Initial attempts to deploy conventional techniques had failed, derailing the original project timelines and creating a significant bottleneck in Nigeria’s gas infrastructure rollout.
Although as of mid-2025, substantial progress had been made, with the Nigerian National Petroleum Company Limited (NNPC) reporting about 72 per cent completion of the project, the task of overcoming the barrier had been a major headache for the national oil company and the contractors.
Besides, the repeated failures and shift in construction methods had not only delayed completion dates but also escalated costs.
A note from Oilserv yesterday indicated that that the challenge has now been resolved, raising the hope that the project will be accelerated forthwith.
“We have successfully crossed the 40-inch x 1.6km Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline through the River Niger using the Horizontal Directional Drilling (HDD) special technique, minimising environmental impact.
“This major feat of engineering excellence, done within three months marks a bold advancement in infrastructure delivery across one of Nigeria’s most challenging terrains.
“As a vital link between regions, this achievement paves the way for greater national integration, energy sustainability and economic growth,” the company stated in the note.
Besides, Oilserv Limited, in partnership, said it had achieved the remarkable milestone to meet NNPC mandate for the completion of the AKK gas pipeline project and remains committed to driving Nigeria’s energy transition.
Oilserv Group of Companies, led by its Group Chief Executive Officer (GCEO), Emeka Okwuosa, stated that the project, spanning 614 kilometers and involving the construction of segment A, is a crucial initiative for advancing the gas infrastructure in Nigeria.
Reports have it that the $2.8 billion pipeline project is the phase one of the 1,300km-long Trans-Nigerian Gas Pipeline (TNGP) project, being part of Nigeria’s Gas Master Plan to utilise the country’s surplus gas resources for power generation as well as for consumption by domestic customers.
In addition, it forms part of the proposed 4,401km-long Trans-Saharan Gas Pipeline (TSGP) to export natural gas to customers in Europe as Nigeria holds Africa’s biggest gas reserves.
Like the other partitions, the first segment of the project which runs from Ajaokuta, covers a distance of approximately 200 kilometres and will transport up to 3,500 million cubic feet (mcf) of gas a day from various gas gathering projects in southern Nigeria.
Oilserv was one of the consortium of two local companies awarded the Engineering, Procurement, and Construction (EPC) contract for the Ajaokuta-Abuja section of the pipeline.
Earlier , the company had described the Pai River crossing as peculiar, explaining that with the deployment of Horizontal Directional Drilling Technology, it was set to ensure a perfect execution of the project.
“We are proud to mark another milestone on the AKK gas pipeline project. Our team has completed a 40-inch x 580m pipeline crossing through the Pai River using HDD, along with a 480m Fiber Optic Communication Cable (FOCC) installation.
“This was done in fractured granite (rock) formation. Despite the challenges and difficult terrain, we delivered with precision, safety, and technical excellence. We have also initiated the Hydrostatic/Line purging process which is company stressed.
Meanwhile, the federal government is considering strategic interventions to address power tariff challenges affecting gas supply and payment structures at key NNPC-led thermal power plants.
This development emerged during a meeting at the NNPC Towers in Abuja between the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo; Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; and NNPC leadership led by Dr. Salihu Jamari, representing the Executive Vice President (EVP) Gas, Power and New Energy.
The meeting focused on urgent financial and policy interventions to resolve tariff-related issues impacting the Maiduguri Emergency Power Plant, Okpai Independent Power Plant (IPP) Phase 2, and Kano IPP Phase 1, a statement by the spokesman to the minister, Louis Ibah, said yesterday.
It quoted the NNPC team as expressing concern over delayed payments and tariff gaps within the Nigeria Bulk Electricity Trading (NBET) framework, posing operational sustainability risks to the gas-fired power projects.
NNPC warned that without timely intervention, power supply to key regions may be jeopardised, with potential economic and social impacts.
Ekpo noted that resolving the bottleneck was critical to ensuring Nigeria’s gas-to-power infrastructure delivers its full value to the economy and the people, emphasising the importance of reliable power generation for regional stability and industrial development in Maiduguri, Kano, and increased supply to the national grid from Okpai Phase 2 IPP.
In his remarks, the Finance Minister, Edun, acknowledged the need for a collaborative approach among all stakeholders to establish a sustainable financial mechanism that ensures the viability of the power plants, while supporting the national grid and economic growth.
According to the statement, all parties agreed to hold a follow-up meeting with the Minister of Power, Adebayo Adelabu, to work towards actionable solutions within a short timeline, focusing on finding a sustainable solution to ensure optimal operation of the affected power plants.
