Asiko Energy has completed the first phase of its 5,500MT LPG and Propane Terminal in Lagos, a development expected to increase the availability of cooking gas in Nigeria and potentially drive down prices. The terminal, according to Managing Director Felix Ekundayo, is designed to receive LPG grades that can be blended to meet the required specification, allowing the company to access cheaper supplies that are currently excluded from the market.
The ability to blend different grades of LPG will enable Asiko Energy to access cheaper supplies that do not individually meet the required specification. This, Ekundayo explained, will help reduce the price of cooking gas in Nigeria. The facility will have inline blending capability, allowing different LPG grades to be blended automatically as cargoes are discharged from ships before being loaded onto trucks.
The project received funding support from the Midstream and Downstream Gas Infrastructure Fund (MDGIF), which helped accelerate the completion of the first phase and will support the next phase of development. Ekundayo disclosed that Asiko expects to receive its first ship cargo in November. The facility has reached mechanical completion, with instrumentation and electrical works, valve testing, and emergency-system checks expected to be concluded within the next few weeks.
Beyond LPG, Asiko Energy is expanding its operations into compressed natural gas (CNG) and liquefied natural gas (LNG). The company plans to establish CNG facilities at two locations before moving into LNG. Ekundayo also disclosed that Asiko is expanding its footprint beyond its existing operations in Abuja and Edo State into Rivers State, as part of its broader gas development strategy.
Ekundayo lamented that Nigeria has yet to fully monetize its gas resources, arguing that greater domestic utilization would enable gas to displace more expensive fuels and strengthen economic activity. He emphasized that gas should be used to displace other fuels so that the economy can grow and people can be more prosperous.
The project is expected to increase employment, with Ekundayo disclosing that between 200 and 300 workers were engaged during construction. The completed facility is expected to roughly double Asiko Energy's current workforce of about 150 employees, while its planned natural-gas projects will create additional jobs. However, Ekundayo identified funding as the major constraint to the development of subsequent phases of the project.
Ekundayo said the company has no major technical concerns over the planned expansion but requires additional capital to execute the next stages. Asiko Energy's new LPG terminal is a significant development in Nigeria's energy sector, and its impact on the market will be closely watched in the coming months.
Key points
- Asiko Energy's new LPG terminal in Lagos aims to drive down cooking gas prices by accessing cheaper supplies from a wider range of producers.
- The terminal has inline blending capability, allowing different LPG grades to be blended automatically as cargoes are discharged from ships before being loaded onto trucks.
- The project received funding support from the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and is expected to increase employment in the energy sector.
