Hyundai, NSML to build Temile’s LPG carrier vessel
An indigenous firm, Temile Development Co, has signed a contract with Hyundai Mipo Dockyard (HMD) and the Nigerian Shipping Management Limited (NSML) for the construction and supervision of its second 23,000 cubic meters LPG/NH3/VCM carrier vessel.
The dual contract award took place at the signing ceremony held at the World Gas Conference (WGC 2022) in Daegu, South Korea.
The contract, according to the indigenous firm, was awarded to Hyundai Mipo Dockyard (HMD) for the construction of the vessel, and the Nigerian Shipping Management Limited (NSML), the shipping arm of the Nigerian LNG Limited, for supervision of the building of the facility.
According to the firm, the development, which came few days after the Nigerian National Petroleum Company (NNPC) Limited and its Joint Venture (JV) partner, Sahara Group, announced taking delivery of two 23,000 CBM Liquefied Petroleum (LPG) vessels at Hyundai Mipo Shipyard in South Korea, was a reflection of the sustained inflow of investments in the country’s oil and gas sector.
The LPG carrier vessel is the second that is being constructed by the Temile Development Company and is sequel to the first vessel which was delivered in 2020 currently chartered to Nigeria 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 issued yesterday by the Chief Executive Officer of Temile Development Co, Alfred Temile, the new carrier vessel to be constructed 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.
“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 as establish 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.
“Having taken delivery of our first LPG carrier vessel, which is currently chartered to Nigerian LNG Limited for domestic LPG supply, we look forward to taking delivery of this new carrier in July 2023 to make an addition to the global gas supply industry,” he said.
Temile noted that the two developments occurring in a space of few days have signified increased investment inflows into the Nigerian oil and gas industry resulting from the enactment and application of the Nigerian Content Act and the Petroleum Industry Act (PIA).
Commenting on the deal, the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, congratulated Temile Development Company and saluted its bullish initiative in investing in an area that was regarded as off-limits for local players.
Wabote described the accomplishment as evidence of significant growth in capacity and confidence of local companies to play in the international arena and in complex areas of the oil and gas industry.
He indicated that the agreement signing event and subsequent construction and supervision of the contract, align with the Board’s strategic plan of maximising the potentials in the midstream and downstream sectors of the Nigerian oil and gas industry, especially as the industry strives to actualise 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 percent LPG to the local market to close the gap in respect of LPG penetration in-country, adding the company has helped in reducing cost as well as creating a cleaner source of energy for our people.
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.