$2.8 Billion AKK Pipeline Set to Deliver Gas to Abuja by July

Nigeria is poised to reach a landmark moment in its energy transition as the Ajaokuta–Kaduna–Kano (AKK) pipeline prepares to begin gas delivery to the Federal Capital Territory (FCT) by July 2026. This update, shared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), signals that the long-awaited project is finally entering its operational phase.

First conceived in 2008, the $2.8 billion project has navigated nearly two decades of shifting deadlines. However, with construction now over 90% complete, industry experts and regulators are confident that the July target will mark the start of a new era for northern Nigeria’s industrial and power sectors.

Powering the North: Capacity and Reach

The 614-kilometre pipeline is designed to be the backbone of Nigeria’s “Decade of Gas” initiative. Key technical highlights include:

• Throughput: A massive capacity to transport over 2.2 billion cubic feet of gas per day.

• Regional Impact: The route spans Kogi, Niger, and Kaduna States before terminating in Kano, providing a direct energy link to demand centers that have historically lacked consistent gas access.

• Industrial Shift: The project is a critical component of the strategy to move northern industries away from expensive diesel and fuel oil toward more cost-effective and cleaner natural gas.

A Technical and Financial Feat

The journey to 90% completion has been defined by significant technical and financial hurdles. Construction, which began in earnest in 2020, required advanced engineering, such as horizontal directional drilling to cross the River Niger.

The project’s financing structure reflects a strong international and domestic partnership:

• Chinese Investment: The China Export and Credit Insurance Corporation provided insurance for 85% ($2.59 billion) of the project cost, sourced from Chinese lenders.

• Domestic Equity: The Nigerian Gas Company contributed the remaining 15% ($434 million) in equity.

• The OB3 Link: The AKK pipeline will draw its supply from gas-rich southern fields via the Obiafu-Obrikom-Oben (OB3) pipeline, creating a unified national gas grid.

Overcoming the “Deadline Dilemma”

The July 2026 target is under intense scrutiny, given the project’s history of missed milestones. Previous completion dates in 2023, 2024, and the first quarter of 2025 were all bypassed due to funding constraints and technical complexities.

However, the current progress represents the closest the project has ever been to the finish line. For the NUPRC and NNPC Ltd, delivering gas to Abuja this July is more than just a technical goal—it is a critical test of Nigeria’s ability to execute large-scale, trans-regional energy infrastructure.