Nigeria’s push to monetise its vast natural gas resources has gained fresh momentum after Tetracore GTL Limited, a subsidiary of Tetracore Energy Group, signed a Memorandum of Understanding with UK-based Velocys Technologies Limited to develop a modular gas-to-liquids (GTL) facility in Atakabo, Ogun State.
The proposed project, designed as a 5,000-barrel-per-day plant, is aimed at converting natural gas into cleaner synthetic fuels and industrial feedstocks, marking another step in Nigeria’s broader strategy to reduce gas flaring, expand domestic fuel production, and deepen industrial capacity.
Under the agreement, Velocys will provide its proprietary microchannel Fischer-Tropsch technology — a specialised process used to convert gas into liquid fuels — along with engineering design support, catalyst systems, licensing, and technical advisory services.
The company described its technology platform as a modular system optimised for efficient synthetic fuel production, making it suitable for scalable industrial deployment.
According to the project timeline, the facility is expected to begin commercial operations by the third quarter of 2028, with output targeted at both domestic consumption and export markets.
Speaking on the development, President and Chief Executive Officer of Tetracore Energy Group, Olakunle Williams, said the project represents more than an energy investment, positioning it as part of a wider industrial transformation agenda.
“Africa’s next industrial growth phase will depend heavily on how effectively we monetise and industrialise our natural gas resources,” Williams said.
“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 that Tetracore’s long-term strategy focuses on building integrated energy infrastructure that can attract global partnerships, strengthen local capacity, create jobs, and support cleaner fuel adoption across African markets.
Tetracore Energy Group’s Managing Director, Oladayo Williams, also described the agreement as a key milestone for the Atakabo GTL project, particularly in securing internationally recognised technical expertise.
“Securing a globally recognised technology partner such as Velocys significantly strengthens the technical and commercial positioning of the development,” he said.
He noted that while Velocys will provide core technology and engineering support, Tetracore will oversee broader project development responsibilities, including feedstock sourcing, infrastructure planning, financing coordination, stakeholder engagement, and execution strategy.
The facility is expected to produce synthetic diesel, naphtha, and other refined liquid fuels that can serve industrial users, domestic consumers, and export markets, potentially reducing reliance on imported petroleum products.
Gas-to-liquids technology is increasingly seen as a strategic solution for gas-rich countries like Nigeria, where large volumes of associated gas are still flared or underutilised despite strong demand for cleaner energy sources.
By converting natural gas into higher-value liquid fuels, projects like the Atakabo GTL facility aim to bridge Nigeria’s energy infrastructure gap while supporting the government’s ambition to transition toward a more gas-driven industrial economy.
The agreement also signals growing international interest in Nigeria’s gas sector, as global firms seek opportunities in cleaner fuel technologies and modular energy systems that can be deployed closer to production sources.
If completed on schedule, the project could add a new layer to Nigeria’s refining and fuel production landscape, complementing larger initiatives such as domestic refineries and LNG expansion projects, while further integrating the country into global energy value chains.