NESGAS Limited, a leading player in Nigeria’s Liquefied Petroleum Gas (LPG) distribution sector, has signed a major $200 million contractor financing agreement with Cakasa Nigeria Limited to build a state-of-the-art 50,000 metric ton LPG storage facility in Onne, Rivers State.
In a statement issued yesterday, NESGAS described the deal as a milestone in its mission to enhance Nigeria’s LPG infrastructure and strengthen the nation’s energy security. The facility will play a pivotal role in supporting Nigeria’s transition to cleaner energy by stabilizing domestic LPG supply and reducing the country’s reliance on imports.
Tunde Banjo, Managing Director of NESGAS, emphasized that the project marks a significant leap forward in expanding Nigeria’s gas value chain. “This partnership with Cakasa ensures that we have both the expertise and financial backing to successfully deliver this ambitious project,” Banjo stated. He highlighted that the new storage facility would reinforce NESGAS’ role in improving energy accessibility across the country.
Barnabas Olise, Managing Director and Chief Executive Officer of Cakasa Nigeria Limited, expressed his excitement about the partnership. He underscored that the deal reaffirmed Cakasa’s commitment to supporting the growth of Nigeria’s energy sector. “We are proud to partner with NESGAS on this transformational project, which will bring world-class engineering and construction solutions to the country’s energy landscape,” Olise said.
Celestine Cliffe, Executive Director for Business Development at Cakasa, further stressed the impact of the facility, explaining that it would significantly boost Nigeria’s LPG storage and distribution capacity. “The Onne facility will ensure a more secure and sustainable energy supply for millions of Nigerians, both in households and industries,” Cliffe noted.
The new facility, set to be one of the largest of its kind in the country, is expected to enhance Nigeria’s domestic LPG supply chain, mitigate the challenges caused by inadequate storage, and stabilize market prices. In turn, the project will benefit consumers, industries, and the broader economy by ensuring more efficient and reliable energy distribution.
With the financing now in place, NESGAS and Cakasa are poised to begin construction of the facility, marking a significant milestone in Nigeria’s energy sector that will contribute to long-term economic growth and energy sustainability.
