Deal Advances Nigeria’s Gas Industrialisation Plan
Tetracore GTL Limited has signed a Memorandum of Understanding with Velocys Technologies Limited of the United Kingdom. The agreement supports a modular gas-to-liquids plant planned for Atakabo in Ogun State.
The company said the project aligns with its gas monetisation and industrialisation strategy. It also positions natural gas as a key driver of cleaner fuel production.
Facility Targets 5,000-Barrel Daily Output
According to the plan, the facility will process about 5,000 barrels per day. It will convert natural gas into cleaner liquid fuels and industrial products.
In addition, Tetracore expects commercial operations by the third quarter of 2028. The company also aims to serve both domestic and export markets.
Velocys to Provide Core Technology Support
Under the agreement, Velocys will supply Fischer-Tropsch technology licensing. It will also provide process design and engineering support.
Furthermore, the UK firm will deliver catalyst systems and technical advisory services. Its microchannel technology will guide modular production and synthetic fuel output.
Clear Division of Responsibilities
Meanwhile, Tetracore GTL will lead project development activities. These include feedstock sourcing, permitting, financing coordination, and infrastructure planning.
Similarly, the company will handle stakeholder engagement and full project execution. On the other hand, Velocys will act as the technology licensor and engineering partner.
Project to Produce Multiple Fuel Products
The plant will produce synthetic diesel, naphtha, and other refined products. These outputs will serve industrial, commercial, and export markets.
As a result, the company expects improved access to cleaner fuel alternatives. It also anticipates stronger industrial supply chains.
Executives Highlight Economic Value
Speaking on the project, Olakunle Williams, President and CEO of Tetracore Energy Group, said Africa must prioritise gas industrialisation. He added that such projects can drive jobs and economic expansion.
In the same vein, Managing Director Oladayo Williams said the partnership strengthens technical capacity. He also noted that it supports project delivery and global collaboration.
Project Aligns With National Energy Goals
Moreover, Tetracore said the agreement reflects growing confidence in Nigeria’s gas sector. It also aligns with national plans for gas commercialisation and industrial growth.
Finally, the company said the project supports the Federal Government’s push for a gas-driven economy.
