NNPC to fund new gas pipelines with transportation tariffs

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The Nigerian National Petroleum Corporation (NNPC) has indicated that up to 1000 kilometres (km) of new gas lines that would be added to Nigeria’s gas line network would be funded through a new framework of contractor financing and then their construction costs paid off through an agreed transportation tariff, THISDAY reports.

Speaking at the recent 2017 conference and annual general meeting of the Nigerian Society of Engineers (NSE) in Abuja, the Group Managing Director of the NNPC, Dr. Maikanti Baru, also explained that the corporation has completed and commissioned about 500km of gas pipelines between 2010 and 2017.

On funding, he said the NNPC would adopt Public Private Partnership (PPP) models in building and expanding the new gas infrastructures, starting with the Ajaokuta–Abuja-Kaduna–Kano (AKK) gas lines which would be built through a contractor financing model, with the selected contractors providing the funds for its construction and then recovering it through transportation tariffs.