- NESGAS Limited has signed a $200 million deal to expand gas operations in Nigeria, with the construction of a 50,000 metric tonnes storage facility.
- Nigeria’s gas sector is growing steadily, with a projected market size of about $10 billion in the future.
A Nigerian oil and gas firm, NESGAS Limited, has signed a $200 million deal to expand gas operations in Nigeria, with the construction of a 50,000 metric tonnes storage facility.
The storage facility will be constructed in Onne, Rivers State, and is expected to significantly boost Nigeria’s liquefied petroleum gas storage capacity from the current capacity of 800,000 metric tonnes, closer to the target of 5 million tonnes.
The $200 million contractor financing agreement with Cakasa Nigeria Limited was signed in Abuja, and the Managing Director of NESGAS, Tunde Banjo, assured it would be promptly executed.
While speaking at the signing ceremony in Abuja, Mr Banjo expressed his excitement over the new deal and noted that it would accelerate Nigeria’s transmission to clean energy.
He assured that NESGAS had the capacity and expertise to execute it and that partnering with Cakasa would further ensure the timely and expert execution of the project.
He said, “This project is a major leap forward in our mission to strengthen Nigeria’s LPG value chain. Partnering with Cakasa ensures we have the expertise and financial backing to execute this ambitious development successfully.”
Nigeria’s gas sector is growing steadily, with about $10 billion projected market size in the future. The government has continued to show its commitment to driving the transition to clean energy and has projected 5 million metric tonnes distribution of liquefied natural gas annually.
Nigeria only has storage capacities ranging from 4,000 to 20,000 metric tonnes, so the construction of a 50,000 storage capacity promises to be the gamechanger.
The use of cooking gas continues to grow popular in Nigerian households, and the government’s projections are to enable over 60 million households to use LPG by 2030.
Meanwhile, the National Bureau of Statistics (NBS) reported that the price of cooking gas increased by more than 44 per cent within one year—from December 2023 to December 2024.