NESGAS, Cakasa Sign Deal For 50,000MT LPG Storage Facility In Rivers

A leading player in Nigeria’s Liquefied Petroleum Gas (LPG) distribution sector, NESGAS Limited, 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 made available to newsmen, Thursday, the Managing Director, NESGAS, Tunde Banjo, described the agreement as a milestone event, adding that it marked a significant step in NESGAS’ commitment to expanding Nigeria’s LPG infrastructure and enhancing supply security.
Banjo stated that NESGAS would support the country’s transition to cleaner energy, while the financing would enable the timely execution of the project, reinforcing the company’s position as a key driver of energy accessibility.
Aside enhancing Nigeria’s gas value chain, the agreement, Banjo said, would 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, Cakasa Nigeria Limited, Barnabas Olise, expressed delight in the partnership stating that the deal reaffirmed the company’s commitment to supporting the country’s energy sector.
Olise 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, the Executive Director, Business Development, Cakasa, Celestine Cliffe, stated that the facility would 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 said.
According to the statement, 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.

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