Falcon Corporation, ND Western Midstream Limited, and First Hydrocarbon Nigeria (FHN) Gas Limited have inked a gas infrastructure development agreement worth more than $25 million in the Lagos Free Zone (LFZ).
The investment, which is for the construction phase, would be funded through stock, according to FHN’s Chief Financial Officer, Kayode Olatunbosun. He said this at the signing ceremony for the gas development infrastructure agreement.
The partnership has been chosen to build, own, and operate a natural gas distribution infrastructure network within the LFZ, which will include a Special Purpose Vehicle (SPV) called Optimera Energy LFZ Enterprise (Optimera Energy) (LFZ).
Dinesh Rathi, LFZ’s Managing Director and Chief Executive Officer, had stated that the Consortium, through their SPV, will deliver uninterrupted piped gas to all of the Lagos Free Zone’s firms by early 2024.
“We warmly welcome the consortium to our shared journey toward realizing Nigeria’s full potential,” he said.
He noted that its relationship with the Falcon Corporation, ND Western Midstream Limited, and FHN Gas Limited is a major development in its ongoing efforts at Lagos Free Zone to build a world-class industrial ecosystem that boosts Nigeria’s competitive standing as a manufacturing powerhouse.
He stated that, with the Lekki Port’s construction set to be finished in December 2022, a stable arrangement to fulfill the energy needs of its rapidly expanding tenant base was required, and expressed confidence that the Consortium’s participation would assist LFZ in achieving this goal.
“This is a one-of-a-kind transaction in Nigeria’s downstream sector, where a consortium of credible upstream, midstream, and downstream corporations has come together to ensure gas supplies to LFZ, West Africa’s rising economic epicentre.”
“The Optimera consortium is made up of similar minded stockholders excited about a single goal: driving the continued growth of domestic gas use in Nigeria,” stated Mrs. Audrey Joe Ezigbo, Managing Director, Optimera Energy. Installing reliable dedicated gas supply infrastructure in the LFZ offers enormous value to existing industrial concerns and makes the Zone more appealing to future customers.”
Ezigbo stated that the effort will be an important step in realizing the goals of the ‘Decade of Gas’ strategy, which includes gas-based industrial expansion.
