Asiko Energy Holdings Limited has completed the first phase of its tri-fuel terminal in Ijora, Lagos, unveiling a fully mounded 5,000-metric-ton LPG and propane storage facility as part of efforts to deepen investment in Nigeria’s gas infrastructure. The terminal was developed as part of the company’s broader vision of establishing a world-class tri-fuel facility capable of handling LPG, propane and LNG.
The facility, whose construction commenced in 2022, is designed to strengthen the storage and distribution of LPG and propane while providing the platform for the company’s planned expansion into liquefied natural gas (LNG).
Speaking at the completion ceremony in Lagos yesterday, Chairman of Asiko Energy Holdings, Alex Ogedegbe, described the project as the outcome of years of investment, determination, technical expertise and collaboration among stakeholders.
Ogedegbe said the project was particularly significant to Nigeria’s gas development ambitions, stressing that the country’s abundant gas resources could play a greater role in industrialisation, energy security and economic development if supported by adequate infrastructure.
The multi-jetty connection is expected to provide the facility with greater flexibility in receiving products, reduce dependence on a single supply point and improve the reliability of coastal gas supply into Lagos.
The facility comprises five 1,000-metric-tonne propane-rated storage tanks, constructed using a fully mounded design in which the tanks are protected beneath a concrete mound. The terminal is connected to Apapa Port through a 1.7-kilometre underground pipeline linking it to three jetty connection points – PWA, NOJ and NNPC jetties.
Ogedegbe said the completion of the first phase was not merely the commissioning of another storage facility but another step in the development of Nigeria’s gas value chain.
He acknowledged the contributions of financiers, engineers, contractors, consultants, regulators, vendors, management and other stakeholders who contributed to the project.
The Divisional Head, Extractive Industries, Bank of Industry (BoI), Nafisa Sambu, described the project as a significant milestone for the country’s energy sector and a demonstration of the opportunities within the gas value chain. He said the facility will also contribute to energy security, job creation, industrial development and sustainable economic growth.
‘At BOI, we remain committed to supporting projects of this nature through appropriate financing, partnerships and interventions that drive investment, expand local value creation and strengthen industrial growth,’ Sambu said.
The Managing Director and Chief Executive Officer, Nigeria LNG Limited (NLNG), Adeleye Falade, an engineer, described the Asiko terminal as a major addition to Nigeria’s energy infrastructure.
Falade commended Asiko for what he described as its resilience, doggedness and commitment to completing the project despite the challenges associated with developing major infrastructure.
He said Nigeria remained a gas-rich country but that inadequate infrastructure continued to constrain the production, distribution and utilisation of the resource.
Falade said expanding gas infrastructure was essential to improving energy security and ensuring that Nigeria derived greater economic value from its gas resources.
He recalled that NLNG decided in 2022 to dedicate 100 per cent of its LPG production – propane and butane – to the domestic market, saying the company had been working to expand LPG availability in Nigeria.
According to him, NLNG introduced cooking gas into the Nigerian market in 2005 with about 70,000 tons and had subsequently increased its production to about 500,000 tons annually.
He said NLNG was also targeting a further 50 per cent increase in LPG production capacity by the end of 2027, subject to the completion of its ongoing programme.
Falade said investments such as the Asiko terminal were necessary to strengthen the domestic gas value chain, improve supply and support the country’s energy transition and economic development.
Also speaking, Head, Commercial Client Coverage, Stanbic IBTC, Babatunde Akindile, described the terminal as a transformational investment in Nigeria’s gas infrastructure.
He said completing the project demonstrated Asiko Energy’s determination and resilience despite changing market conditions, cost pressures, foreign exchange volatility and infrastructure challenges.
Akindile said the facility would enhance storage and distribution capacity for LPG and propane, improve supply-chain efficiency and contribute to greater domestic gas utilisation.
He added that Stanbic IBTC, as a long-standing banking partner of Asiko Energy, remained committed to supporting businesses investing in critical infrastructure and creating long-term economic value.
The representative of Wema Bank’s Deputy Managing Director, Divisional Head, Corporate Banking, Kayode Oladipo, also described the project as a testament to the company’s vision, resilience, planning and disciplined execution.
He said the bank was proud to have supported Asiko on part of its journey, stressing that the role of banks went beyond providing capital to supporting businesses that create jobs, strengthen critical sectors and contribute to economic development.
He said the new terminal would increase energy capacity, improve access to gas and create new opportunities for businesses and communities.
The Chief Risk Officer, Infrastructure Credit Guarantee Company Limited (InfraCredit), Chidi Ene, said the project demonstrated what could be achieved when commercially viable infrastructure was matched with appropriate financing and credit enhancement.
He said InfraCredit supported the project through its guarantee, helping to mobilise long-term local credit financing.
According to Ene, the transaction also demonstrated the importance of risk-sharing and partnerships in financing critical infrastructure.
He said InfraCredit’s role was not limited to providing guarantees but also involved creating conditions that enable viable infrastructure projects to access capital, manage risk and reach completion.
The next phase of the project will focus on LNG infrastructure, with the company planning additional modular tanks and a large fully contained LNG storage tank.
The expansion, planned to commence in 2027, is expected to complete the terminal’s tri-fuel configuration.
Company project details indicate plans for 12 modular tanks of 250 cubic metres each, followed by a large fully contained LNG tank. The LNG phase is expected to provide additional capacity for the storage and distribution of natural gas and support future LNG-to-CNG applications where appropriate compression infrastructure is deployed.
Speaking on the engineering challenges involved in developing the terminal, Asiko Energy’s Felix Ekundayo said the project involved extensive underground construction, including about two kilometres of drilling and pipeline work between Ijora and Apapa.
He said about 1,500 stone columns were drilled to a depth of 13.5 metres to strengthen the ground, while thousands of truckloads of sand and thousands of tonnes of steel were used in the construction.
Ekundayo said the project also included an underground fire-water storage system larger than an Olympic-sized swimming pool and systems for cathodic protection and product tracking.
He said the pipeline linking the terminal to three Apapa jetties would enable the company to receive cargo through multiple points, providing operational flexibility.
On the planned LNG phase, Ekundayo said the company would construct additional tanks of increasing heights, with the largest LNG tank expected to reach about 42 metres.
He said the LNG storage system would incorporate double-walled stainless-steel construction and vaporisers capable of supplying LNG or natural gas into the pipeline network.
Ekundayo said the LNG expansion would require further investment, including infrastructure for receiving LNG vessels.
The completion of the LPG and propane terminal marks the first major phase of Asiko Energy’s long-term plan to establish a tri-fuel gas facility capable of supporting LPG, propane and LNG operations from its Ijora location.