Tetracore GTL Limited, a subsidiary of Tetracore Energy Group, has signed a Memorandum of Understanding with UK-based Velocys Technologies Limited to support the development of a modular gas-to-liquids facility in Atakabo, Ogun State.
The company disclosed this in a statement on Thursday, noting that the project forms part of its broader gas monetisation and industrialisation strategy.
According to the statement, the proposed facility is planned as a 5,000-barrel-per-day gas-to-liquids plant targeted at converting natural gas into cleaner liquid fuels and industrial products.
Under the agreement, Velocys is expected to provide proprietary Fischer-Tropsch technology licensing, process design support, engineering services, catalyst systems, and technical advisory support for the project.
The statement added that the facility would leverage Velocys’ proprietary microchannel Fischer-Tropsch technology platform designed for modular deployment and optimised synthetic fuel production.
It noted that the project is targeted to achieve commercial operations by the third quarter of 2028 and is expected to support both the domestic market and export opportunities.
Speaking on the project, the President and Chief Executive Officer of Tetracore Energy Group, Olakunle Williams, said, “Africa’s next industrial growth phase will depend heavily on how effectively we monetise and industrialise our natural gas resources. Projects such as this are not simply energy projects; they are industrial development platforms capable of driving manufacturing, infrastructure growth, energy security, export competitiveness, and long-term economic value creation.”
He added, “Tetracore remains focused on developing transformative energy infrastructure across the gas value chain. Our broader objective is to build integrated projects that attract global partnerships, strengthen local industrial capacity, create jobs, support cleaner fuel adoption, and position Africa more competitively within the evolving global energy landscape.”
Also commenting, the Managing Director of Tetracore Energy Group, Oladayo Williams, noted that the execution of the MOU represents a major advancement for the Atakabo GTL project.
“Securing a globally recognised technology partner such as Velocys significantly strengthens the technical and commercial positioning of the development and provides a strong foundation as we move towards the next stages of project structuring and execution.
Velocys brings globally respected Fischer-Tropsch technology expertise, while Tetracore continues to advance the critical elements required for project delivery, including feedstock strategy, infrastructure planning, financing coordination, stakeholder engagement, and market development. This collaboration reflects the kind of international technical partnerships required to unlock large-scale industrial energy projects across Africa,” Williams stated.
The company stated that the proposed facility is expected to produce synthetic diesel, naphtha, and other refined liquid products targeted at industrial, commercial, domestic, and export energy markets.
It added that Tetracore GTL would lead project development activities, including feedstock supply, permitting, financing coordination, infrastructure development, stakeholder engagement, and overall project execution, while Velocys would serve as the technology licensor and engineering support provider.
According to the statement, the agreement also reflects growing international confidence in Nigeria’s gas industrialisation potential and aligns with national objectives on gas commercialisation, industrial development, cleaner fuel alternatives, and the Federal Government’s push towards a gas-driven industrial economy.
