Asiko Energy Completes Major LPG and Propane Terminal in Lagos

Asiko Energy Limited has completed the first phase of its 5,000MT LPG and Propane terminal in Ijora, Lagos, marking a significant step in Nigeria’s push to boost domestic gas utilization. The tri-fuel gas terminal, which will eventually integrate LPG, propane, and LNG on a single site, aims to set a new standard for gas logistics and industrial supply security in the country.

The terminal, sponsored by the Midstream and Downstream Gas Infrastructure Fund (MDGIF), addresses critical market gaps in storage, marine access, and truck-out distribution. It features five propane-rated tanks and is connected to Apapa Port via a 1.7km pipeline with three jetty points, allowing for efficient coastal supply. The facility can receive up to 440 tonnes of product per hour and evacuate 160 tonnes per hour, ensuring reliable storage and distribution in Lagos.

Mr. Alex Ogedegbe, Chairman of Asiko Energy, emphasized the need for government support to scale gas infrastructure, noting that interventions like MDGIF could attract private investment into midstream and downstream gas assets. Mr. Adeleye Falade, Managing Director of Nigeria LNG Ltd., highlighted Nigeria’s natural gas riches but pointed to infrastructure deficits limiting resource utilization. He noted that NLNG produced 500,000 tonnes of LPG in 2025, meeting 40% of the country’s demand, and plans to increase production capacity by 50% by the end of 2027.

Falade also cautioned that increased storage capacity alone does not guarantee lower retail LPG prices, as they depend on factors like supply, import costs, transportation, and exchange rates. Mr. Felix Ekundayo, Managing Director of Asiko Energy, detailed the project’s challenges, including the use of 6,000 tonnes of steel, 4,000 truckloads of sand, and 1,500 stone columns drilled to 13.5 meters for ground improvement.