Nigerian energy company Tetracore GTL has signed a technology agreement with UK-based Velocys Technologies to support the development of a 5,000 barrels-per-day gas-to-liquids plant in Ogun State, Nigeria.
The agreement marks an important step for Tetracore Energy Group’s plan to expand gas industrialisation and cleaner fuel production in Nigeria using the country’s large natural gas reserves.
Tetracore GTL, a subsidiary of Tetracore Energy Group, signed the Memorandum of Understanding with Velocys to support the planned modular gas-to-liquids facility located in Atakabo, Ogun State.
Under the agreement, Velocys will provide its proprietary Fischer-Tropsch technology, engineering support, catalyst systems, process design services, and technical advisory support for the project.
The plant is expected to convert natural gas into synthetic diesel, naphtha, and other refined liquid fuel products for industrial and commercial use.
Velocys is known globally for its microchannel Fischer-Tropsch technology, which is designed for modular deployment and cleaner fuel production. The proposed Atakabo project could become one of the first uses of Velocys’ microFTL technology in Africa.
Tetracore said the project forms part of its broader strategy to improve domestic gas utilisation, reduce gas flaring, and expand value-added energy infrastructure across Nigeria and West Africa.
Speaking on the agreement, Tetracore Energy Group President and Chief Executive Officer, Olakunle Williams, described the partnership as a major milestone for the company’s long-term industrial energy plans.
“This marks a major strategic step forward in Tetracore’s long-term industrial energy vision,” Williams said. “Securing a globally recognised technology partner such as Velocys significantly strengthens the technical foundation of the Atakabo GTL project.”
He added that Africa’s future industrial growth will depend not only on extracting natural gas resources, but also on how effectively countries process and monetise those resources locally.
According to Williams, gas-to-liquids technology could help Nigeria produce cleaner transportation fuels, create jobs, support infrastructure development, and strengthen regional energy security.
Tetracore GTL will oversee project development activities including feedstock supply, permitting, financing coordination, stakeholder engagement, and infrastructure development.
The agreement also reflects increasing international interest in Nigeria’s gas industrialisation sector as the Federal Government continues pushing policies aimed at building a gas-driven economy.
The proposed facility aligns with Nigeria’s wider efforts to commercialise natural gas resources, reduce dependence on imported fuels, and support cleaner industrial energy alternatives.
Tetracore said the signing of the Memorandum of Understanding represents an early-stage framework that could lead to final project agreements and future development phases.
