NESGAS, Cakasa Sign $200m Deal for 50,000MT LPG Storage Facility in Onne

NESGAS Limited, a leading player in Nigeria’s Liquefied Petroleum Gas (LPG) distribution sector, has signed a $200 million contractor financing agreement with Cakasa Nigeria Limited for the construction of a state-of-the-art 50,000 metric ton LPG storage facility in Onne, Rivers State.

In a statement on Thursday, the firm described it as a milestone agreement, noting that it marked a significant step in NESGAS’ commitment to expanding Nigeria’s LPG infrastructure and enhancing supply security.

Besides, it stated that it will support the country’s transition to cleaner energy, while the financing will enable the timely execution of the project, reinforcing NESGAS’ position as a key driver of energy accessibility.

Speaking on the deal, Managing Director of NESGAS, Tunde Banjo, stated that aside from enhancing Nigeria’s gas value chain, the agreement will make the required expertise as well as the funding available.

“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,” Banjo stated.

In his remarks, Managing Director and Chief Executive of Cakasa Nigeria Limited, Barnabas Olise, expressed delight in the partnership, pointing out that the deal reaffirmed the company’s commitment to supporting the country’s energy sector.

He said: “We are proud to partner with NESGAS on this transformational project. This financing deal reaffirms Cakasa’s commitment to supporting Nigeria’s energy sector with world-class engineering and construction solutions.”

Also speaking, Executive Director, Business Development at Cakasa, Celestine Cliffe, said that the facility will not only boost the country’s storage and distribution capacity, but boost energy security and sustainability for Nigerians.

“The Onne facility will significantly boost Nigeria’s LPG storage and distribution capacity, ensuring a more sustainable and secure energy supply for millions of households and industries,” Cliffe added.

The new facility is expected to play a crucial role in stabilising domestic LPG supply and reducing reliance on imports, ultimately benefiting consumers and industries across the country, the statement said.

Emmanuel Addeh

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