The market for cryogenic storage tanks in Nigeria is mostly getting its momentum from the Nigeria LNG Limited (NLNG) Train 7 expansion project and by the upgrading of the old facilities. In fact, the African cryogenic market as a whole (consisting of Nigeria, Kenya, and South Africa) is expected to grow at a rate of 7% to 9% per year.
Infrastructure & Capacity Trends
Expansion & Upgrades: A major part of the projects is being dedicated to instrumentation upgrading. Along with liquefaction expansion, downstream bunkering and Floating Storage and Regasification Units (FSRUs) will be the major drivers for very large tanks (100, 000 m³ to 200, 000 m³).
Double Containment Deployment: Double containment tanks that comprise an inner nickel-steel tank and a secondary outer concrete/carbon steel barrier (Double containment tanks) are gaining market share the fastest because of strict leak-prevention and safety regulations.
Capital Intensity: The construction of large land-based Nigeria LNG Terminal storage tanks requires massive capital investment with the average amount ranging from USD $120 to $250 million based on the volume and containment design.
Technological Advancements
Boil-Off Gas (BOG) Reduction: Lessening the amount of BOG is a key factor in selecting cryogenic storage tank materials.
Precision Monitoring: Only the best temperature sensors and systems for level and density measurements and controls are installed so that LPG storage temperature of -162°C, which is required by standards for safe operation can be consistently maintained.
Modular Storage: Modular tanks are pre-manufactured in factories and sizes of 200-4, 000 m³ are commonly used for a systematic approach as they reduce the risks of weld sites and shorten the overall construction time.
Market Challenges & Drivers
Upstream Vulnerability: Pipeline vandalism and supply disruptions upstream have been the major reasons for the fluctuation of the utilization rates at Bonny Island and they also cause uncertainties in the region for the auxiliary midstream infrastructures.
Transportation Shift: The conversion of sailing vessels and heavy duty vehicles to LNG propulsion in West Africa is the main reason for the increasing need of transportable cryogenic containers and tankers of ISO standard.
As a professional manufacturer of cryogenic gas equipment, Zhuoyue Gas Equipment delivers customized solutions tailored to project demands. Feel free to contact our engineers for detailed support and quotations.
