Tetracore GTL Limited, a subsidiary of Tetracore Energy Group, has signed a Memorandum of Understanding (MoU) with UK-based Velocys Technologies Limited to support the development of a modular gas-to-liquids (GTL) facility in Ogun State.
According to the company, the proposed project will be located in Atakabo, Ogun State, and is planned as a 5,000-barrel-per-day GTL plant designed to convert natural gas into cleaner liquid fuels and industrial products.
Under the agreement, Velocys will provide proprietary Fischer-Tropsch technology licensing, engineering support, catalyst systems, process design, and technical advisory services for the project. The facility will utilise Velocys’ microchannel Fischer-Tropsch technology platform, which is optimised for modular synthetic fuel production.
Tetracore said the project forms part of its broader strategy focused on gas monetisation, industrialisation, and expanding cleaner energy infrastructure across Nigeria. Commercial operations for the plant are targeted for the third quarter of 2028.
Speaking on the development, President and Chief Executive Officer of Tetracore Energy Group, Olakunle Williams, said Africa’s next phase of industrial growth will depend heavily on the ability to monetise and industrialise natural gas resources effectively. He noted that projects of this nature go beyond energy supply and can drive manufacturing growth, infrastructure expansion, energy security, and export competitiveness.
Tetracore’s Managing Director, Oladayo Williams, described the partnership with Velocys as a major milestone for the Atakabo GTL project, stating that securing a globally recognised technology partner significantly strengthens the technical and commercial positioning of the development.
The company disclosed that the facility is expected to produce synthetic diesel, naphtha, and other refined liquid products for industrial, commercial, domestic, and export markets. Tetracore will oversee project development activities including feedstock supply, financing coordination, permitting, infrastructure development, and stakeholder engagement, while Velocys will act as technology licensor and engineering support provider.
Industry stakeholders say the agreement reflects growing international confidence in Nigeria’s gas industrialisation potential and aligns with the Federal Government’s push toward a gas-driven economy. The project is also expected to support cleaner fuel adoption, create jobs, and deepen local industrial capacity. The development adds to Tetracore’s expanding energy infrastructure portfolio in Ogun State, where the company has also invested in compressed natural gas (CNG) facilities, independent power projects, and energy-linked digital infrastructure initiatives.
