Peter Uzoho
Asiko Energy Holdings has said it is targeting a reduction in cooking gas prices as its fully mounded 5000 metric tons Liquefied Petroleum Gas (LPG) and Propane terminal in Ijora, Lagos, are set to enable blending of cheaper cooking gas grades for the domestic market.
The facility, which achieved mechanical completion recently, has five 1,000MT propane-rated tanks and a 1.7km underground pipeline to three jetty points at Apapa Port.
Managing Director of Asiko Energy, Mr. Felix Ekundayo, said part of the reason for building the terminal was to bring in a larger variety of LPG to make cooking gas more affordable.
“So today we bring in material from NLNG, that material is already pure, ready for the cooking gas market. We’ve built this facility to be able to receive other types of LPG that are cheaper,” Ekundayo said.
“There are other producers out there that make LPG that is cheaper. It’s not the right specification, but it can be blended to make the right specification, which will help us drop down the price of cooking gas.”
He said the terminal has blending skids for inline blending as the ship discharges and can load trucks immediately, plus blending pumps for in-tank blending. “The whole drive is to start to make cooking gas more affordable.”
The project is backed by funding from the Nigerian Midstream and Downstream Gas Infrastructure Fund (MDGIF), which Ekundayo described as a supporting and funding partner that catalysed completion of this phase and the next LNG phase.
Chairman, Asiko Energy Board, Mr. Alex Ogedengbe, said the vision started 20 years ago and the terminal is more than an Asiko project but part of a national effort to move gas from opportunity to impact.