By Nnasom David

Tetracore GTL Limited has signed a memorandum of understanding with UK-based Velocys Technologies Limited for the proposed development of a gas-to-liquids (GTL) facility in Atakabo, Ogun State.

The agreement sets out a framework for Velocys to provide Fischer-Tropsch technology licensing, engineering support, catalyst systems and technical advisory services for a planned 5,000 barrels-per-day plant.

The project, being promoted as part of Nigeria’s gas industrialisation drive, is expected to convert natural gas into synthetic diesel, naphtha and other liquid fuels for industrial and commercial use.

According to the companies, the proposed facility will use Velocys’ microchannel Fischer-Tropsch technology, designed for modular deployment and synthetic fuel production.

Speaking on the development, President/Chief Executive Officer of Tetracore Energy Group, Olakunle Williams, said the partnership represents a key step in the company’s industrial energy strategy.

“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 added that Nigeria’s gas resources must be better harnessed for local industrial use and value creation.

“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 said.

Under the arrangement, Tetracore GTL will lead project development, including feedstock supply, permitting, financing coordination, infrastructure development and stakeholder engagement, while Velocys will act as technology licensor and engineering partner.

The companies said the initiative reflects growing interest in Nigeria’s gas sector and aligns with broader efforts to expand gas utilisation, reduce flaring and support industrial development.

They added that the memorandum represents an early-stage framework ahead of more detailed project agreements and further development phases.

Tetracore GTL is a subsidiary of Tetracore Energy Group focused on gas monetisation and energy infrastructure development, while Velocys Technologies specialises in Fischer-Tropsch synthetic fuel technology for lower-carbon fuel production.