Asiko Energy has achieved mechanical completion of its LPG and propane terminal in Ijora, Lagos. The company aims to receive its first ship cargo in November. The terminal is designed to receive different grades of LPG, which can be blended to meet domestic market specifications. This blending capability is a major advantage of the facility, enabling Asiko to access cheaper LPG grades.
The Managing Director of Asiko Energy, Felix Ekundayo, highlighted the terminal's benefits at the completion ceremony. The facility will allow Asiko to receive LPG from Nigeria LNG Limited (NLNG) and other Nigerian producers. It will also provide access to cheaper products that can be blended for the cooking gas market. Ekundayo emphasized that the blending capability will help reduce the cost of cooking gas.
The terminal has a storage capacity of approximately 5,000MT, with five 1,000MT propane-rated storage tanks. It is connected to three jetty points at Apapa Port through a 1.7-kilometre underground pipeline. This connection provides access to coastal supply infrastructure, positioning the facility for distribution into Lagos and the hinterland. The project commenced in 2022 and is the first phase of Asiko's planned tri-fuel gas infrastructure.
Ekundayo stated that the facility has reached mechanical completion, with instrumentation and electrical works to be completed before the first cargo arrives. The next stage involves testing valves, emergency systems, and installing wires. Asiko aims to complete these works within a few weeks. The company is looking forward to receiving the first ship cargo in November.
The Asiko terminal is a significant development in Nigeria's gas infrastructure. Ekundayo noted that Nigeria needs to do more to monetize its gas resources. Gas flaring imposes a costly burden on the economy, with every dollar of gas flared requiring $30 to $40 to replace. Ekundayo emphasized the need to deploy gas to displace other fuels and support economic growth.
Asiko plans to enter the compressed natural gas (CNG) market, with two locations identified for CNG facilities. The company is prioritizing securing financing for subsequent phases of its infrastructure development. Ekundayo highlighted the importance of monetizing Nigeria's gas resources and reducing gas flaring.
The completion of the LPG and propane terminal marks a significant milestone for Asiko Energy. The facility is expected to increase access to cheaper cooking gas, supporting economic growth and reducing the cost of living. With the first ship cargo expected in November, Asiko is poised to play a major role in Nigeria's gas market.
Key points
- Asiko Energy's LPG terminal will enable the company to access cheaper LPG grades, reducing the cost of cooking gas.
- The terminal has a storage capacity of approximately 5,000MT and is connected to Apapa Port through a 1.7-kilometre underground pipeline.
- Asiko plans to enter the CNG market, with two locations identified for CNG facilities.
