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Asiko Energy inaugurates LPG, propane terminal at Ijora – EnviroNews
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Asiko Energy Holdings Ltd., says it has completed an LPG and propane terminal in Ijora, Lagos, with support from the Midstream and Downstream Gas Infrastructure Fund (MDGIF).
Chairman of Asiko Energy, Mr Alex Ogedegbe, disclosed on Tuesday, September 29, 2026, that the terminal was designed to boost LPG storage, improve marine supply access and facilitate truck evacuation.
Ogedegbe said the facility would potentially strengthen product availability for households and businesses.
He said the facility had a 1.7-kilometre pipeline linking it to three jetty points at Apapa Port, providing direct access to marine supply infrastructure.
“It has five mounded, propane-rated tanks and can receive products at about 440 tonnes per hour and evacuate about 160 tonnes per hour,” he said.
The chairman said the terminal was developed to provide reliable, safe and efficient infrastructure for LPG and propane storage and distribution.
Ogedegbe said improved infrastructure was essential to expanding energy access for households, businesses and industries.
He said government-backed interventions such as MDGIF could help catalyse private investment in critical midstream and downstream gas infrastructure.
Mr. Adeleye Falade, Managing Director of Nigeria LNG Ltd., said Nigeria remained rich in natural gas but faced infrastructure deficits that limited the utilisation of its resources.
Falade said NLNG produced about 500,000 tonnes of LPG in 2025, representing about 40 per cent of the country’s demand.
He said demand was growing, making additional storage, transportation and distribution infrastructure necessary to strengthen domestic supply.
Falade said NLNG planned to increase its LPG production capacity by 50 per cent by the end of 2027.
He said the terminal’s connection to three Apapa jetties would provide multiple marine supply points and reduce reliance on less efficient supply routes.
Falade, however, said increased storage capacity alone did not automatically translate to lower retail LPG prices, which also depended on product supply, import costs, transportation, exchange rates and other distribution costs.
Managing Director of Asiko Energy, Mr. Felix Ekundayo, said the company overcame significant engineering and construction challenges to deliver the project.
Ekundayo said the project involved about 6,000 tonnes of steel, 4,000 truckloads of sand and 1,500 stone columns drilled to 13.5 metres for ground improvement.
He said the company also used horizontal directional drilling to construct the pipeline connection through built-up areas and other infrastructure corridors.
According to him, the company planned a second phase involving a 30,000-cubic-metre LNG terminal and associated infrastructure.
He said the facility also had a firewater system, control room and laboratory for product analysis, while environmental monitoring systems had been installed for water discharge management.
Ekundayo said the project was supported by financial institutions, including the Bank of Industry, Stanbic IBTC, Wema Bank and InfraCredit.
The Deputy Managing Director of Wema Bank, Mr Oluwole Ajimisinmi, who spoke on behalf of the financiers, said the terminal would improve product availability and supply-chain efficiency.
Ajimisinmi, represented by Divisional Head, Corporate Banking, Mr. Kayode Oladipo, said the company provided a guarantee that helped mobilise long-term local financing for the project.
He said the project showed how credit enhancement and risk-sharing could support infrastructure development.
He said the project demonstrated the potential for partnerships between government interventions and private capital to expand critical gas infrastructure.
“The completion adds storage and marine-access infrastructure to Nigeria’s LPG value chain at a time when domestic demand is rising and producers are seeking to boost supply,” he said.
By Olusegun Aribike
