Asiko Energy Looks Forward to Having its 30,000CuM LNG Terminal Operational in Near Future

Asiko Energy Holdings, a leading provider of clean energy solutions in West Africa, has reaffirmed its commitment to having the first phase of its LNG terminal operational in the coming years.

This terminal, Nigeria’s first fully contained in-land LNG storage facility with a 30,000CuM capacity, is set for completion and operation within two years. Additionally, Asiko expects to complete its propane project—a fully mounded propane-rated terminal for LPG storage. This terminal will be connected directly to the NPSC jetties in Apapa, Lagos, via a 10-inch LPG pipeline to receive gas by ship.

Upon completion, it will feature five 1,000MT propane tanks. Located in Ijora, Lagos State, these projects are anticipated to be completed within the next three years. These infrastructure developments aim to address significant bottlenecks in the gas sector, not just in Nigeria but across Africa.

In an exclusive interview with  Majorwaves, Felix Ekundayo, Managing Director/Chief Executive Officer of Asiko Energy, highlighted these milestone developments. He said, “I expect that in the next few years, once we have a terminal operational, the LPG propane side  will be 100% fully operational; the first phase of our LNG terminal will also be operational—which will be the first of its kind—and within three years, we will be operating on the larger tank. All of these are milestone developments for any company in Africa.

“In fact, this is the first tri-fuel terminal anywhere in Sub-Saharan Africa and the first LNG receiving terminal in Sub-Saharan Africa. We are proud of the progress on these ongoing projects. Despite being a small company, we have tackled problems that IOCs and the national oil company have never encountered nor considered solving. We have done this quietly, continuing our business day-to-day, and we look forward to the next phase of our growth.

“The infrastructure we are building will remove longstanding bottlenecks, elevating our operations to a new level. That, for me, will be a major achievement.”  Ekundayo foresees significant growth in Africa’s natural gas sector as the commitment to shifting more Africans from dirty cooking fuels to cleaner solutions increases.

Asiko aims to have a substantial portion of the African population using LPG, replacing firewood, charcoal, and other dirty cooking fuels. The company also projects increased use of LNG at an industrial and commercial scale in Africa in the coming years. “The outlook in Africa is quite robust. For LPG, the target market has expanded significantly, ensuring clean cooking and greater rural penetration. This shift is largely driven by convenience, cleanliness, and a substantial secondary health benefit.

“Our belief, hope, and drive are to see a significant proportion of Africa’s population convert to and use  LPG instead of firewood, charcoal, and similar fuels. On the LNG side, it will cater more to industrial and commercial operations. Currently, Africa is not as industrialised or commercialised as it needs to be to upport its population. “We anticipate tremendous growth in the natural gas sector for LNG and its various forms, whether CNG or piped gas. Both types of gas will experience significant growth because Africa needs to develop rapidly to catch up,” said Ekundayo.

Asiko ranks itself as number one in the propane space and believes that once its ongoing projects are completed, the company will be among the top five players in the LPG market.

“For us, we operate in several areas. In the LPG space, we rank ourselves in the top ten, if not the top five, and once we complete our current developments, we will certainly be in the top five in terms of volumes, competence, and industry presence.

“For propane, which is different from LPG, I consider us the market leader. For LNG, when we enter the market, I predict we will be joint number one with the current leading player. Although they have an early advantage, we will definitely be strong competitors when the time comes. The market is large and growing, so we welcome new entrants, as they will help bridge the infrastructure funding gap. Positive stories like Asiko Energy’s benefit the broader Nigerian narrative,” the CEO asserted.

Liquidity is a major issue in the Nigerian gas market. While Ekundayo acknowledges the liquidity problem in the natural gas market, he believes the LPG market does not face this issue. The main problem with the LPG market, he noted, is price volatility, which hampers business.

“The LPG market does not have a liquidity problem; the natural gas market does, due to the power sector. The LPG market struggles with price volatility, leading to periods of excess supply and brief periods of hesitation.

Sellers are reluctant to sell expensive stock at a loss, but there is no liquidity challenge in my mind.  Infrastructure- wise, the LPG market has sufficient resources today. For propane, there is not enough infrastructure or demand yet, but this is not a liquidity issue. “In the natural gas sector, there is a liquidity challenge because most natural gas supply is pipeline-based and goes to power stations, which themselves have liquidity problems.

If your customers face liquidity issues, you inevitably face them too,” he said. Asiko is dedicated to  enabling a comprehensive network of clean energy solutions across West Africa. Its vision is to unlock the region’s clean energy potential by creating a future where sustainable, accessible, and innovative energy solutions drive progress and prosperity. Incorporated in 2006, Asiko has transformed into a  leader in the energy sector within less than two decades, focusing on LPG with active plans to expand to LNG, and renewable energy sources.