Temile Development Co, a local company, has inked a contract with Hyundai Mipo Dockyard (HMD) and Nigerian Shipping Management Limited (NSML) for the building and supervision of its second 23,000 cubic meter LPG/NH3/VCM carrier vessel.
The signing ceremony for the dual contract was held at the World Gas Conference (WGC 2022) in Daegu, South Korea.
According to the local corporation, the contract was awarded to Hyundai Mipo Dockyard (HMD) for the vessel’s construction and to Nigerian Shipping Management Limited (NSML), the shipping arm of Nigerian LNG Limited, for the facility’s monitoring.
The development, which came just days after the Nigerian National Petroleum Company (NNPC) Limited and its Joint Venture (JV) partner, Sahara Group, announced the delivery of two 23,000 CBM Liquefied Petroleum (LPG) vessels at the Hyundai Mipo Shipyard in South Korea, was a reflection of the country’s oil and gas sector’s sustained inflow of investments, according to the firm.
The LPG carrier vessel is the Temile Development Company’s second, and it follows the first, which was delivered in 2020 and is now chartered to Nigeria LNG Limited for domestic LPG delivery.
The first LPG vessel was delivered in 2020, and the newly awarded vessel was part of a $120 million two-vessel construction project.
The new carrier vessel to be built, according to Alfred Temile, Chief Executive Officer of Temile Development Co, is a high-end specification vessel that has been designed by NSML in compliance with unique needs employing HMD’s highly efficient eco-design.
Temile stated the new LPG carrier would be delivered to HMD in Ulsan, Korea, on July 26, 2026, and that the development proves the company’s commitment to the Nigerian Local Content Act and their faith in local capabilities to deliver worldwide acceptable standards.
“We are thrilled to be working with HMD on the construction of our new LPG carrier, and to have NSML on board to oversee the project.” As an indigenous company, we are demonstrating our dedication to and support for the Nigerian Local Content Act, as well as our belief in local potential to meet international standards.
“Working with HMD again gives us the assurance that this eco-design/cleaner fuel vessel will be built in accordance with worldwide best practices and industrial laws, allowing the vessel to enter the international gas supply value chain.”
“We look forward to taking receipt of this new carrier in July 2023 to make an addition to the global gas supply business,” he said, referring to the delivery of his first LPG carrier vessel, which is now contracted to Nigerian LNG Limited for domestic LPG supply.
Temile highlighted that the two events, which occurred within a few days of each other, indicate greater investment inflows into Nigeria’s oil and gas industry as a result of the enactment and implementation of the Nigerian Content Act and the Petroleum Industry Act (PIA).
Simbi Wabote, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), praised Temile Development Company on its bold decision to invest in an area previously considered off-limits to domestic companies.
The achievement, according to Wabote, demonstrates a major increase in local enterprises’ capacity and confidence to compete in the worldwide arena and in complicated areas of the oil and gas industry.
He stated that the signing of the agreement, as well as the subsequent construction and supervision of the contract, are in line with the Board’s strategic plan to maximize the potentials in the Nigerian oil and gas industry’s midstream and downstream sectors, particularly as the industry strives to implement the federal government’s decade of gas policy.
“This project obviously supports our LPG penetration initiative in Nigeria and will further decrease the LPG penetration gap in Nigeria,” he says.
He went on to say that the initiative will provide tremendous chances for local content in the areas of technology and innovation, human capital development, and research and development.
Furthermore, the executive secretary praised Hyundai for its work at the Brass Shipyard and other investment projects in Nigeria that will help with vessel maintenance.
He also praised NLNG for taking the strategic step of deploying 100 percent LPG to the local market in order to reduce the gap in LPG penetration in the country, noting that the firm has assisted in cost reduction and the creation of a cleaner source of energy for our people.