Asiko Hits Mechanical Completion of 5000MT LPG Terminal in Ijora, Expects First Gas Nov
*Targets cooking gas price cut via blending as NMDGIF-funded project anchors national gas expansion Peter Uzoho Asiko Energy Holdings has achieved mechanical completion of its fully mounded 5000 metric tons
Azerbaijan-based Asiko Energy Holdings has completed the mechanical construction of its 5000 metric tons Liquefied Petroleum Gas (LPG) and Propane terminal in Ijora, Lagos. The first gas cargo from Nigeria LNG Limited and other suppliers is anticipated in November 2026. The inauguration ceremony took place on Tuesday and marked the delivery of the inaugural phase of a broader integrated gas infrastructure.
This encompasses twelve 250 cubic meters cbm tanks and a forthcoming 30,000cbm fully contained LNG terminal set to commence operation in the following year. The terminal comprises five 1,000 MT propane-rated tanks, a safety-mounded structure, and a 1.7-kilometre underground pipeline connecting to three jetty points at Apapa Port.
The project, funded by the Nigerian Midstream and Downstream Gas Infrastructure Fund (NMDGIF) in line with the national Decade of Gas agenda, was inaugurated in 2022 to establish a tri-fuel hub that links coastal supply to inland distribution. Alex Ogedengbe, Chairman of Asiko Energy Holdings Board, revealed that the vision for the project emerged two decades ago and transitioned from concept to reality via determination and collaboration.
Ogedengbe emphasized that the project transcends Asiko's endeavours and is part of a broader national initiative aimed at transforming gas from opportunity to impact. He lauded Nigeria's abundant gas reserves, which should play a pivotal role in decarbonization, energy security, and economic development. The managing director of Asiko Energy, Felix Ekundayo, highlighted that the terminal will receive gas from Nigeria LNG Limited and other Nigerian producers, thereby providing gas previously isolated and exported to the domestic market.
Ekundayo further explained that the mechanical completion will be followed by instrumentation and electrical works, including the testing of wires, valves, and emergency systems, within weeks before the inaugural ship arrives in November. "The significance of the project lies in our ability to receive gas from NLNG and other Nigerian producers, bring that gas that was previously isolated on islands and exported into the country, and distribute it," Ekundayo stated.
"We already possess a distribution chain in the hinterland, and this distribution chain will now be supplied by our own infrastructure." Felix Ekundayo elaborated on the project's pricing strategy, noting that the facility is designed to receive cheaper off-spec LPG from global producers and blend it to meet cooking gas standards, thereby driving down prices.
With inline blending skids capable of blending during discharge and loading trucks simultaneously, as well as blending pumps for in-tank blending, the terminal is equipped to compete in the market. Nigeria's NLNG has described the terminal as a "masterpiece for Nigeria's energy security." Nigeria possesses over 200 trillion cubic feet of gas but suffers from a deficit in midstream infrastructure, necessitating reliance on less efficient fuels.
The Asiko terminal, backed by the NMDGIF, offers a coastal-to-hinterland linkage that will deepen LPG penetration, displace biomass and kerosene, and mitigate indoor air pollution. The larger 30,000cbm LNG development is poised to expand gas utilization for power generation, industry, and transportation, facilitate LNG-to-CNG applications, and bolster domestic utilization.
By facilitating the blending of cheaper LPG grades, the project aims to make cooking gas more affordable for households while generating hundreds of direct employment opportunities.
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