Our midstream jetty will save Nigeria N43bn annually, says OVH Energy

ASPM Limited, a subsidiary of OVH Energy Limited OVH energy, has launched Lagos midstream jetty (LMJ).

Located in Apapa, Lagos, the LMJ was built by Oando PLC to increase the delivery capacity and offloading efficiency of petroleum products into marketers’ storage facilities.

The company said the jetty would save Nigeria N43 billion annually.

“The LMJ is expected to alleviate the perpetual infrastructural menace experienced in Apapa, eliminating the lightering and demurrage charges currently being incurred by petroleum marketers by NGN8.3 billion ($23 million) and NGN9.8 billion ($27 million) respectively,” read a statement issued by the company.

“An additional 13.1 billion is estimated to be saved through reduction in product imports as well as costs savings on associated transactions.”

Speaking at the launch, Wale Tinubu, chairman, OVH Energy, said the LMJ was built to solve challenges faced by petroleum marketers with the aim to remove charges incurred by them.

“The Lagos Midstream Jetty was conceived as an innovative industry solution to the perennial challenges marketers faced in the importation of petroleum products,” he said.

“Over the past 30 years, marketers have spent approximately NGN1.6 Trillion ($4.5 billion) on lightering, with 90% of this spend flowing out of the country.

“Today we have delivered a first-class piece of engineering that meets global standards, is the first of its kind in sub-Saharan Africa and will be of invaluable benefit to the industry and nation at large.”

Deji Osikoya, general manager of ASPM Limited, also said the facility would boost petroleum supply and reduce importation costs.

“The Lagos Midstream Jetty is an innovative infrastructure investment designed to radically transform the efficiency of Nigeria’s downstream landscape and boost Nigerian’s petroleum downstream economics,” he said.