Energy

December 5, 2023

LPG: Nigeria expands investment in infrastructure – Report

LPG

By Udeme Akpan, Energy Editor 

Nigeria’s Liquefied Petroleum Gas, LPG sector has witnessed massive investment, targeted at putting in place new infrastructure to enhance the delivery and utilization of the product.

In its report, obtained by Vanguard, Argus LPG World, stated: “In Nigeria, where the government is pushing its LPG expansion programme that has prompted investment in new seaborne import terminal infrastructure, to absorb not only more imports but supplies from the country’s Bonny Island LNG plant, the number of facilities rises to 16 at 226,000t combined from 13 at 206,000t.

“This will continue to rise with projects in the near-term pipeline with capacities of 11,000-20,000t, and longer term for projects of 30,000t and 50,000t.”

Checks by Vanguard, indicated the infrastructure would expand in the coming years as many investors, including Falcon Corporation Limited has secured a N19.41 billion facility from the Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF) for infrastructural development.

The company stated: “The proceeds of the loan are earmarked for the development of a state-of-the-art 15,000 metric ton Liquefied Petroleum Gas (LPG) storage facility and a dedicated jetty situated in Rumuolumeni, Saipem/Aker Base Road, Port Harcourt, Rivers State, Nigeria (the “Project”).

“The Project, which has reached an advance stage, is being carried out in two (2) distinct phases, with the initial phase focusing on the construction of a 10,000 metric ton spherical tank (consisting of 2 tanks, each with a capacity of 5,000 metric tons), a dedicated jetty and other associated infrastructure, which is to be followed by the development of an additional 5,000 metric tons of storage at a later date.

According to the Managing Director of the Company, Prof. Joe Ezigbo, “At Falcon, we consider our investments in the Gas industry as a national service first. This is why over the past almost thirty years; we have continued to expand our footprints within the industry, despite the various environmental challenges. 

Gas development is our contribution to nation building and we remain unrelenting in this regard.