Senate’s Local Content Committee has expressed dissatisfaction with the delay in executing the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project by Brentex CPP Limited.
During an interactive session with Brentex CPP Limited, chaired by Senator Natasha Akpoti-Uduaghan (PDP, Kogi Central), the committee specifically addressed the management of the $1.27 billion station execution component of the contract.
Sani Abubakar, Chairman of Brentex CPP Limited, lamented to the committee that the Nigerian National Petroleum Company Ltd (NNPCL) is attempting to remove the $1.27 billion stations (TGS) component of the contract, which has contributed to the delay in execution.
“We have been in discussions with NNPCL for the past eighteen months regarding the descoping of the $1.27 billion stations. The delay in executing the contract is not our fault but rather a result of NNPCL’s actions,” he said.
In response, the committee chairperson pointed out that based on the information and documents submitted, NNPCL is considering descoping the stations component due to Brentex’s failure to meet the agreed-upon pace of work.
“Let’s be honest here. The project was supposed to be completed in 2022, then extended to 2023, and recently extended again to a completion date of May 2025. As far as stakeholders are aware, the stations are under your control as part of the $1.27 billion, and the delay lies with you,” she emphasised.
The committee requested that Brentex CPP Limited provide all correspondence between the company and NNPCL to gather more information.
They also requested the letter from NNPCL stating the descoping conditions, as it is likely that they would make such a decision with a valid reason.
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