Asiko Energy Holdings Limited has launched a groundbreaking 5,000 metric tons tri-fuel gas terminal in Lagos, marking a significant milestone in Nigeria's downstream petroleum supply chain. The terminal, located in Ijora, integrates Liquified Petroleum Gas (LPG), propane, and Liquefied Natural Gas (LNG) on a single site, establishing a new benchmark for gas logistics and industrial supply security in the country. This development is expected to strengthen product availability for households and businesses nationwide.
The terminal, built to address critical market gaps in storage, marine access, and truck-out, features five mounded, propane-rated tanks and can receive products at approximately 440 tonnes per hour and evacuate about 160 tonnes per hour. The facility is linked to Apapa Port by a 1.7km pipeline connected to three jetty points, providing direct access to coastal supply. Chairman of Asiko Energy, Mr. Alex Ogedegbe, emphasized that scaling infrastructure is crucial to expanding energy access for households, businesses, and industries.
The project, sponsored by the Midstream and Downstream Gas Infrastructure Fund (MDGIF), was completed four years after construction began in 2022. Ogedegbe called for targeted government support, citing interventions like the MDGIF, which could catalyze private capital into critical midstream and downstream gas assets. The terminal is engineered for reliable, safe, and efficient storage and distribution of LPG and propane in the densely populated Lagos corridor.
Managing Director of Nigeria LNG Ltd., Mr. Adeleye Falade, noted that Nigeria remains rich in natural gas but faces infrastructure deficits that limit the utilization of its resources. He disclosed that NLNG produced about 500,000 tonnes of LPG in 2025, representing approximately 40 percent of the country's demand. Falade also announced plans to increase NLNG's LPG production capacity by 50 percent by the end of 2027.
Falade emphasized that the terminal's connection to three Apapa jetties provides multiple marine supply points and reduces reliance on less efficient supply routes. However, he cautioned that increased storage capacity alone does not automatically translate to lower retail LPG prices, which also depend on product supply, import costs, transportation, exchange rates, and other distribution costs.
Managing Director of Asiko Energy, Mr. Felix Ekundayo, highlighted the significant engineering and construction challenges overcome to deliver the project. The development involved approximately 6,000 tonnes of steel, 4,000 truckloads of sand, and 1,500 stone columns drilled to 13.5 meters for ground improvement. The company also employed horizontal directional drilling to construct the pipeline connection through built-up areas.
The new terminal is expected to play a vital role in Nigeria's energy sector, enhancing the availability and distribution of LPG, propane, and LNG. Asiko Energy's innovative approach to integrating multiple fuel sources on a single site sets a new standard for the industry. With the country's growing demand for energy, such infrastructure developments are crucial to ensuring a stable and efficient supply.
Key points
- Asiko Energy's new terminal integrates LPG, propane, and LNG supply on a single site, establishing a new benchmark for gas logistics in Nigeria.
- The terminal has a capacity of 5,000 metric tons and features five mounded, propane-rated tanks.
- Nigeria LNG Ltd. plans to increase its LPG production capacity by 50 percent by the end of 2027.
