May 22, (THEWILL) — Tetracore GTL Limited, a subsidiary of Tetracore Energy Group, has signed a strategic Memorandum of Understanding (MoU) with Velocys Technologies Limited to support the development of a proposed 5,000 barrels-per-day modular Gas-to-Liquids (GTL) facility in Atakabo, Ogun State.
The agreement marks a major step in Tetracore’s broader gas industrialisation and energy infrastructure expansion strategy, as Nigeria intensifies efforts to commercialise its vast natural gas reserves and deepen cleaner fuel production.
Under the partnership, Velocys will provide proprietary Fischer-Tropsch technology licencing, engineering support, catalyst systems, process design services, and technical advisory capabilities for the planned GTL facility.
The project will deploy Velocys’ microchannel Fischer-Tropsch technology platform, designed for modular GTL operations and the production of synthetic fuels from natural gas feedstock.
According to Tetracore, the proposed facility is expected to commence commercial operations by the third quarter of 2028, and will produce synthetic diesel, naphtha, and other refined liquid fuels targeted at domestic industrial users and export markets.
Speaking on the significance of the project, President and Chief Executive Officer of Tetracore Energy Group, Olakunle Williams, said Africa’s industrial growth will depend heavily on how effectively natural gas resources are monetised and integrated into broader industrial development plans.
He noted that the GTL project goes beyond energy production, describing it as a platform capable of driving manufacturing growth, infrastructure development, cleaner fuel adoption, job creation, and regional energy security.
Managing Director of Tetracore Energy Group, Oladayo Williams, said securing Velocys as a technology partner significantly strengthens the project’s technical and commercial positioning as the company advances financing, infrastructure planning, permitting, and stakeholder engagement.
Under the arrangement, Tetracore GTL will oversee feedstock supply strategy, financing coordination, infrastructure development, regulatory approvals, and project execution, while Velocys will serve strictly as technology licensor and engineering support provider.
The Atakabo GTL project aligns with Nigeria’s broader gas commercialisation agenda and the Federal Government’s push toward a gas-driven industrial economy to reduce reliance on imported refined petroleum products.
The partnership also reflects growing international investor confidence in Nigeria’s gas infrastructure potential as companies increasingly pursue gas-to-power, compressed natural gas, and cleaner industrial energy solutions across West Africa.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
