Nigeria's Asiko Energy Completes 5,000-Tonne LPG Storage and Distribution Terminal

en.Wedoany.com Reported - Nigerian energy company Asiko Energy has held a completion ceremony for Phase 1 of its liquefied petroleum gas (LPG) and propane storage and distribution terminal in Ijora, Lagos. The facility features 5 fully mounded storage tanks with a total storage capacity of 5,000 tonnes, capable of receiving approximately 440 tonnes of product per hour and dispatching approximately 160 tonnes. The project is scheduled to receive its first LPG cargo in November 2026, with LNG storage facilities to be built in subsequent phases.

The terminal is located in the Ijora industrial area of Lagos. Phase 1 comprises 5 propane-grade storage tanks of 1,000 tonnes each, employing a fully mounded structure capable of storing LPG and propane, with product blending capability. The terminal is connected to 3 jetty connection points at Apapa Port via a 1.7-kilometre underground dedicated pipeline, receiving gas products discharged from vessels and distributing them to downstream customers through the overland transport network.

Construction commenced in 2022. During the construction period, approximately 6,000 tonnes of steel and 4,000 truckloads of sand were used, and the site foundation was treated with 1,500 stone columns 13.5 metres deep for ground improvement. The underground pipeline connecting to the port was constructed using horizontal directional drilling technology, crossing existing built-up areas and infrastructure corridors.

The project received support from the Nigerian Midstream and Downstream Gas Infrastructure Fund (MDGIF). The Nigerian LNG Limited (NLNG) and other suppliers are expected to provide the first LPG cargo to the terminal, while cargo receipt and actual operational arrangements following mechanical completion of the facility remain to be implemented.

Asiko Energy plans to build an integrated LPG, propane and LNG storage and distribution facility in phases at the Ijora site. Subsequent development plans also include 12 storage tanks of 250 cubic metres each, as well as a full-containment LNG storage tank facility with a capacity of 30,000 cubic metres, with the LNG terminal planned to commence construction in 2027.