Tetracore signs Velocys deal for 5,000 BPD Ogun GTL project

 

Tetracore GTL Limited, a subsidiary of Tetracore Energy Group, has signed a Memorandum of Understanding with Velocys Technologies Limited to support the development of a 5,000 barrels-per-day Gas-to-Liquids (GTL) plant in Atakabo, Ogun State.

The agreement brings together Tetracore’s gas infrastructure plans and Velocys’ Fischer-Tropsch synthetic fuels technology. The proposed facility is expected to convert natural gas into liquid fuels and industrial products for domestic and regional markets.

Under the terms of the agreement, Velocys will provide its proprietary Fischer-Tropsch technology licence, engineering support, catalyst systems, process design services and technical advisory services for the project.

The Atakabo GTL project is expected to use Velocys’ microFTL™ technology platform, which is designed for modular deployment and synthetic fuel production. The project could become one of the first deployments of the technology in Africa.

Tetracore said the project forms part of its broader plan to increase gas utilisation in Nigeria, reduce gas flare losses and expand downstream energy infrastructure across the region. The company added that the facility is expected to produce synthetic diesel, naphtha and other liquid products for industrial and commercial use.

Speaking on the agreement, Olakunle Williams, President and Chief Executive Officer of Tetracore Energy Group, said the partnership represented an important step in the company’s long-term energy plans.

“This marks a major strategic step forward in Tetracore’s long-term industrial energy vision. Securing a globally recognized technology partner such as Velocys significantly strengthens the technical foundation of the Atakabo GTL project and reinforces our commitment to building bankable, globally aligned energy infrastructure projects in Africa,” he said.

Williams said Nigeria’s gas resources could support industrial growth if they are processed and utilised within the country.

“Nigeria holds vast natural gas resources, and the future of industrial growth on the continent will depend not only on extraction, but on how effectively we monetize and industrialize those resources locally. GTL presents an opportunity to convert gas into cleaner transportation fuels and industrial feedstocks while unlocking economic value, jobs, infrastructure development, and regional energy security,” he added.

Tetracore GTL will oversee project development activities including feedstock supply, permits, financing coordination, infrastructure development and stakeholder engagement, while Velocys will serve as the technology licensor and engineering support provider.

The company said the agreement reflects increasing international interest in Nigeria’s gas sector and aligns with the Federal Government’s drive to expand gas commercialisation and industrial development. It added that the MOU represents an early-stage framework that could lead to further project agreements and future development phases.