As a leading clean energy company, Asiko Energy is strategically positioning to further take advantage of the ample opportunities in the Nigerian gas market. With the country’s vast natural gas reserves and government’s push to increase gas utilization, we are well oriented to tap into this promising market and further solidify our position as a key player in the African energy sector.
The global outlook
Liquefied Natural Gas (LNG) has become an increasingly important source of energy in recent years. As at 2021, global LNG trade volumes reached 516bcm, indicating a continuous upward trend in demand. A 2021 McKinsey report forecasted a 23% increase in LNG’s share of global gas supply from 2021’s 18%.
Bringing it down to Africa
Nigeria as a nation has about 209.5Tcf proven natural gas reserves which is the largest in Africa, accounting for 33% of the continent total gas reserves and about 3% of the total world’s reserves. Data by HydroCIS places 2022’s total market consumption at 1.14MT and expects the Nigerian gas market to reach about 130kT monthly consumption by Jan 2025 as against 2022’s average 95.3kT per month.
How Asiko is preparing for the future
The abundance of resources in the country is a testament to the vast opportunities within the gas sector. As a result, we are building an in-land Propane and LNG terminal in Ijora Lagos, which can be reached through both marine (via a pipeline from existing Jetty facilities) and road network access points. The terminal which is currently in its first phase – the propane terminal construction is scheduled to be completed mid-2023.
The potential of our in-land Propane and LNG terminal lies not only in its strategic placement away from traffic dense zones in the Ijora-Apapa axis but also in its ability to import, store and distribute LPG, accelerate LPG supply across Nigeria and limit LPG scarcity.
For us at Asiko Energy, the construction of the terminal is both timely and relevant, as it will provide the country with a platform to capitalize on its abundant natural gas reserves. With the demand for natural gas on the rise, particularly in the developing countries, the in-land terminal will contribute to our competitive edge in the global energy market. The project will not only contribute to the growth of the energy sector but will also stimulate the development of other industries, create job opportunities, attract foreign investment and reduce gas flaring. Our in-land terminal is a strategic investment that will ensure the sustainable growth and development of the Nigerian economy for years to come.