The Energy Republic June Edition 2022

NIGERIA OIL AND GAS
Temile Awards New Vessel Building Contract to Hyundai,
NSML to Boast Nigerian LPG Market international gas supply value chain.”
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 twovessel-
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.
" A s a n i n d i g e n o u s c o m p a ny, t h i s
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
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.
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THE ENERGY REPUBLIC I SPECIAL EDITION