AP LPG terminal begins construction of 20,000MT LPG in Lagos
AP LPG terminal, a subsidiary of Ardova PLC, has commenced the construction of a 20,000 metric tonne Liquified Petroleum Gas (LPG) storage terminal in Lagos.
The facility ceremony signified the official commencement of construction activities which is expected to be completed in December 2022.
Upon completion, the project will be the largest LPG storage facility in the nation and will ease some of the existing bottlenecks in the value chain for the supply of cleaner and more efficient energy for domestic use (cooking gas) in Nigeria, amongst other strategic benefits.
Group CEO, Ardova, Olumide Adeosun expressed his appreciation to Stanbic IBTC Infrastructure Fund for its commitment to the project and noted that the importance of having formidable partners for project development, planning, execution, and investment support cannot be over-emphasised.
“We are pleased to have the support of the Stanbic IBTC Infrastructure Fund for its pioneering role in a transformational project within the LPG value chain, which will undoubtedly accelerate the various energy transition initiatives currently underway at Ardova,” he said.
He added that “This support has helped us commence construction of this 20,000 metric tonne LPG storage terminal, which is expected to bring efficiency and reliability of LPG supply to Nigerian consumers as well as create long term value for our shareholders.”
He noted further that “Beyond the cleaner energy premise, approximately 600 direct jobs will be created during the construction of the project and there is a multiplier effect of about additional 1,400 indirect jobs that will be created during the construction period after which it settles to about 250 to 300 jobs once the project becomes operational.”
The Chief Executive, Stanbic IBTC Asset Management, Oladele Sotubo stated that, “Across the globe, cleaner energy investments have continued to be the focus. Given the environmental sustainability benefits of this project, Stanbic IBTC Infrastructure Fund’s investment philosophy is properly aligned, hence the support for the 20,000 metric tonne Liquified Petroleum Gas (LPG) storage facility terminal.”
A portion of the first Tranche of the N100 billion Stanbic IBTC Infrastructure Fund, which closed in August 2021, was used to part finance the LPG storage terminal.
Sotubo went on to express his gratitude to Ardova for partnering with Stanbic IBTC Infrastructure Fund, commending all the Tranche one investors, including institutional investors and other High Networth Individuals (HNIs), for the confidence reposed in the fund.
He pointed out the impact their investment is making in terms of solving some of Nigeria’s infrastructure bottlenecks, creating jobs while earning returns, saying, “As an organisation, we remain committed to bridging Nigeria’s infrastructure deficit through the provision of investment capital needed to develop projects.”
Stanbic IBTC Infrastructure Fund remains committed to funding infrastructure projects with competitive return profiles, sustainable environmental practices, and the potential to positively impact the economy.
The Chief Executive Officer (CEO), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbeng Komolafe has assured stakeholders of the Commission’s resolve to ensure transparency in all its dealings.
Komolafe gave the assurance in Abuja on Friday, while giving an update on the revoked Addax Petroleum licence.
Komolafe had confirmed that Addax Petroleum lost Oil Mining Licences (OMLs) 123, 124, 126 and 137 and were reverted to NNPC due to its inability to meet set obligations in the licence award provision.
The NUPRC, formerly known as the Department of Petroleum Resources (DPR), in 2021 revoked four Production Sharing Contracts (PSCs) licences operated by Addax Petroleum, citing production decline and non-development of assets for several years.
The assets were immediately re-awarded to Kaztec Engineering Limited/Salvic Petroleum Resources Limited (KEL/Salvic) Consortium, consisting of two Nigerian owned independents, with effect from March 23, 2021, with the approval of President Muhammadu Buhari.
According to Komolafe, the re-award of the Addax licence will be a test case for the effectiveness of the Petroleum Industry Act (PIA).
He said that prior before now, oil mining leases were issued under the defunct Petroleum Act.
The PSCs consists of Oil Mining Licence (OML) 123, 124, 126 and 137, all belonging to Addax Petroleum Development Nigeria Ltd. (APDNL), and Addax Petroleum Exploration Nigeria Ltd. (APENL).
Addax Petroleum was established in 1994, and since August 2009, has been a subsidiary of the Sinopec Group, one of the largest oil and gas producers in China, the biggest oil refiner in Asia and the third largest worldwide.
