A team of three Nigerian firms, Falcon Corp., ND Western Midstream and FHN Gas, are set to build a natural gas infrastructure network in Lagos Free Zone under a build, own and operate (BOO) arrangement.
The companies will execute the project through a special purpose vehicle, Optimera Energy. At a signing ceremony recently, the Lagos Free Zone chief executive officer, Dinesh Rathi, explained that Optimera Energy will deliver uninterrupted piped gas by early 2024 to all the enterprises within the Lagos Free Zone.
Rathi also said that the gas plan would however be facilitated by the completion of the Lekki Port, which is expected to be completed in December this year.
“We needed to secure a reliable arrangement to meet the energy needs of our fast-growing tenant base, and we are confident that our partnership with the consortium would help us realise the same,” he said.
The chief financial officer of FHN, Kayode Olatunbosun, had in a LinkedIn post, estimated the value of the gas infrastructure plan at $25 million, saying that the project would meet up to 200 million cubic feet of gas demand in the country.
Also commenting on the project, the managing director of Optimera, Audrey Joe-Ezigbo, said the three companies possess the same quality with like-minded objectives.
“They are all determined to accelerate the further growth of domestic gas utilisation in Nigeria. A dedicated gas supply in the free zone adds tremendous value to existing industrial concerns,” Joe-Ezigbo said.
She added that the gas plan will increase the zone’s attractiveness to future customers. She further noted that the group plans to work with the Nigerian Midstream & Downstream Regulatory Authority (NMDPRA) on the project.
“The consortium members bring over 50 years of experience and expertise in operating across the natural gas value chain from upstream production in the Niger Delta to downstream distribution to industries in Lagos,” she said.
The team will “deliver this project on time and under budget, as we have done within our respective portfolios.”
Joe-Ezigbo who is the co-founder and deputy managing director of Falcon Corp., which operates the Ikorodu natural gas distribution, project in Lagos State also said that the project will improve regional competitiveness of the country in terms of gas exportation.
“This will improve the regional competitiveness of the country as an export oriented industrial hub with an energy-enabled deep seaport in the heart of Lagos”, the FHN executive said.
The project is in line with the company’s corporate strategy, he said. It aims to integrate along the energy value chain while diversifying its revenue base beyond oil,” she said.
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