The Nigeria Liquefied Natural Gas company is planning to increase its Liquefied Petroleum Gas (cooking gas) production by 50 per cent by the end of 2027, as the firm seeks to meet rising demand for cooking gas in Nigeria.
The Managing Director and Chief Executive Officer of the company, Adeleye Falade, disclosed this at the completion ceremony of the Asiko Energy Holdings Limited LPG and propane terminal in Ijora, Lagos, noting that the company’s domestic LPG production had grown significantly since it introduced cooking gas into the Nigerian market.
Falade said NLNG produced about 500,000 tonnes of LPG in-country as of last year, but that the volume accounted for only about 40 per cent of the country’s demand, indicating the need for increased supply and investment in infrastructure.
“We actually pioneered the introduction of cooking gas into Nigeria in 2005 when we started at 70,000 tonnes, and at that time we had 100 per cent of the market share. As of last year, we were already producing in-country 500,000 tonnes of LPG, but guess what? It’s now just about 40 per cent of the country’s demand. This means demand is growing; it means we need to look for more opportunities in order for us to be able to bring the gas in,” he said.
The NLNG boss noted that the company’s board decided in 2022 that 100 per cent of its retained LPG production would be supplied to the domestic market, despite the company’s export-oriented operations.
He asserted that the country’s major challenge was not a lack of gas resources but inadequate infrastructure for distributing the commodity.
“While we have the gas, one of the things that is also obvious to us is that we’re a country that is very deficit in infrastructure, and that’s the critical piece that Asiko Energy Holdings is filling,” Falade said.
Falade added that NLNG would increase its capacity to produce LPG by 50 per cent by the end of next year.
“We’re also on the growth agenda. By next year, towards the end of next year, by God’s grace, we’ll be able to increase our capacity to produce more LPG by fifty per cent, and we trust that that will also help,” he said.
Falade maintained that the additional production would require companies such as Asiko Energy to provide infrastructure capable of receiving and distributing the product to consumers.
“While we produce it, we need the likes of Asiko Energy to be able to take it and make sure that it touches the lives of the average Nigerian in a positive way,” he stated.
The Chairman, Board of Directors, Asiko Energy Holdings Limited, Alex Ogedegbe, said the completion of the LPG and propane terminal demonstrated the importance of collaboration between the government and private sector in developing Nigeria’s gas infrastructure.
Ogedegbe said the terminal had an LPG and propane capacity of approximately 5,000 metric tonnes, adding that the project had taken about 20 years from conception to completion.
Ogedegbe appreciated the Federal Government for its partnership through the Midstream and Downstream Gas Infrastructure Fund, adding that the support had helped catalyse private-sector investment in critical energy infrastructure.
The Managing Director and Chief Executive Officer, Asiko Energy Holdings Limited, Felix Ekundayo, said the terminal was designed to receive a wider variety of LPG, including cheaper supplies that could be blended to meet the required specification for the Nigerian market.
Ekundayo said the terminal was connected to three of the largest jetties used for LPG deliveries into Nigeria, enabling it to receive cargoes through multiple points.
The Divisional Head, Extractive Industries, Bank of Industry, Nafisa Sambo, said the bank had supported the Asiko project for more than five years.
She said the facility would contribute to energy security, job creation, and industrial development, while the bank remained committed to financing projects that expanded local value creation and strengthened Nigeria’s industrial base.