2025-02-14
In a significant boost to Nigeria’s domestic gas expansion, NESGAS Limited has signed a $200 million contractor financing agreement with Cakasa Nigeria Limited for the construction of a 50,000 metric tonne liquefied petroleum gas (LPG) storage facility in Onne, Rivers State. The deal marks a major milestone in Nigeria’s efforts to scale up LPG adoption, as the country aims to increase its current storage capacity of 800,000 metric tonnes to meet its five million metric tonne annual distribution target. The project is expected to improve supply security and accelerate the government’s push for cleaner cooking fuels.
Speaking at the signing ceremony in Abuja, NESGAS Managing Director, Tunde Banjo, emphasized that the initiative would play a key role in strengthening Nigeria’s LPG value chain. “This project is a major leap forward in our mission to enhance domestic gas infrastructure. Partnering with Cakasa ensures we have the expertise and financial backing to execute this ambitious development successfully,” Banjo stated. The facility will significantly expand storage capacity beyond the country’s existing range of 4,000 to 20,000 metric tonnes, positioning Nigeria to meet rising demand for LPG.
With over 60 million households projected to transition to LPG by 2030, the expansion of storage infrastructure is seen as critical to reducing reliance on traditional biomass for cooking, which has contributed to widespread deforestation and health hazards. The new facility aligns with Nigeria’s clean energy agenda, aiming to curb environmental degradation and improve energy accessibility. Industry experts believe the investment will drive further private sector participation in Nigeria’s growing LPG market, which is currently valued at $10 billion.
For more visit:https://guardian.ng/business-services/business/nigerian-oil-firm-secures-200-million-for-domestic-gas-expansion/
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The International Centre for Energy, Environment and Development Foundation is committed to the goal of poverty eradication. We deliver this commitment by providing the evidence base for reforms and political influence that shape the poor's energy and climate security. ICEED has over the years of its establishment become Nigeria's leading centre on energy access and climate change. Together with some of the world's foremost resource centres, we have brought market development expertise, capacity building, project implementation and behaviour communication to Nigeria. ICEED has led some of the most important clean energy and climate change activities including the development and promotion of the Bill to Establish the National Climate Change Commission; leading the development of the Greenhouse Gas Emission Inventory for Nigeria and writing the Federal Government of Nigeria's Renewable Energy Master Plan. Our key expertise is in policy reform and market development for expanding access to clean energy.
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