Techno Oil Limited has sealed a deal with Cakasa Nigeria Limited for the construction of a 12,000 tones automated terminal for liquefied petroleum gas (LPG), also known as cooking gas. The terminal will be located in Lagos State, Nigeria Today reported.

Techno Gas and Power’s Managing Directo, Collins Onyeama said that the facility at the Kirikiri coastline at Apapa in Lagos is expected to boost LPG storage holding in Nigeria and it would be handled by CAKASA in partnership with a leading European firm. He added that Access Bank Plc. Onyeama provided facilities for the construction of the terminal, with Cakasa completing work by late 2017, informed Ecofin Agency.

The project is under Nigeria’s efforts to increase the use of LPG as a source of domestic fuel by many households in the country rather than kerosene and firewoods. Current LPG consumption stands at 400,000t/y. Even though the usage of cooking gas had risen by about 36.8% in Nigeria in the past three years, more than 90% of households still depend on kerosene, firewood and other harmful fossils for their energy needs, he noted.

Furthermore, Techno Oil has announced that the company’s LPG cylinder manufacturing plant being built in Lagos had been slated for inauguration in February 2017. Onyeama added that the company would commence the installation of 50 units of digital LPG skids at some filling stations in December to make LPG plants more accessible to Nigerians.