Temile Development Company, a Nigerian indigenous shipping company, has signed a contract with the Hyundai Mipo Dockyard (HMD), a foremost vessel manufacturer in South Korea, for the construction of new 23,000CBM Liquefied Petroleum Gas (LPG) vessel carrier.
The contract also involved the Nigerian Shipping Management Limited (NSML), a shipping subsidiary of the Nigeria LNG Limited, which was contracted to supervise the construction of the vessel to ensure it meets specifications and international standards. NSML is an integrated maritime services company providing a wide range of worldclass maritime and shipping services including training, manning, fleet management and consultancy services.
According to report, there are limited numbers of LPG vessels owned and managed by Nigerian companies, which had been highlighted as part of the factors responsible for the insufficient supply of the LPG product to domestic market.
Based on this development, Nigeria’s LPG market is set to witness a positive growth opportunities as this vessel, when operational, will help to ramp up the supply of cooking gas in Nigeria.
The LPG carrier vessel is the second that is being constructed by the Temile Development Company and is a sequel to the first vessel which was delivered in 2020 currently chartered to Nigerian LNG Limited for domestic LPG supply.
The first LPG vessel delivered in 2020 and the newly awarded were part of a two-vessel- building project valued at over $120 million.
In a statement made known to The Energy Republic, the Chief Executive Officer of Temile Development Company, Alfred Temile said that the new LPG vessel carrier is a high-end specification vessel which has been designed by NSML in accordance with bespoke requirements using HMD’s highly efficient eco-design.
Temile said the new LPG carrier was expected for delivery on July 26, 2026 at HMD in Ulsan, Korea, adding that the development demonstrates the company’s commitment and support to the Nigerian Local Content Act and establishes their confidence in local capacity to deliver international acceptable standards.
He said, “We are delighted to execute the construction of our new LPG carrier with HMD, bringing onboard NSML to supervise the construction.
“As an indigenous company, this demonstrates our commitment and support to the Nigerian Local Content Act and as well establishes our confidence in local capacity to deliver international acceptable standards.
“Working with HMD again makes us feel in very safe hands as we are confident that this eco-design/cleaner fuel vessel shall be constructed in line with international best practices and industrial regulations thereby creating a space for the vessel in the international gas supply value chain.”
More so, Nigerian Content Development and Monitoring Board (NCDMB) has lauded the initiative of Temile Development Company for signing a contract agreement with Hyundai Mipo Dockyard (HMD) to construct the new 23,000 cubic meters Liquefied Petroleum Gas vessel carrier.
In a video message delivered during the agreement signing ceremony held at the sidelines of the 2022 World Gas Conference in Daegu, South Korea, the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote commended Temile Development Company for its bullish initiative in investing in an area that is regarded as off-limits for local players.
Wabote indicated that the agreement signing event and subsequent construction and supervision of the contract align with the Board’s strategic plan of maximizing the potentials in the Midstream and Downstream Sectors of the Nigerian oil and gas industry, especially as the oil and gas industry strives to actualize the Decade of Gas policy of the Federal Government.
According to him, “this project clearly supports our LPG penetration initiative in Nigeria and will further close the gap in LPG penetration in Nigeria.”
He stated further that the project will bring invaluable local content opportunities in technology and innovation, human capital development and research and development.
Speaking further, the Executive Secretary commended Hyundai for the work it was doing at the Brass Shipyard and other investment projects in Nigeria that will support the repair of vessels.
He also applauded NLNG for the strategic initiative of deploying 100 per cent LPG to the local market to close the gap in respect of LPG penetration in-country, adding that the company has helped in reducing cost as well as creating a cleaner source of energy for our people.
Furthermore, Nigeria’s daily LPG consumption is 1.2 million metric tonnes (MT) with 750,000mt, representing 60 per cent imported by oil marketing companies and 450,000mt, representing 40 per cent supplied in-country by the Nigerian Liquefied Natural Gas (NLNG) Limited.
The federal government plans to increase the country’s LPG consumption to 5 million MT by 2025, banking on several initiatives and opportunities including an increase in the number of LPG carrier vessels owned by indigenous firms and chartered to Nigerian companies as well.