A consortium of three exploration and production companies; Falcon Corporation, ND Western Midstream Limited & FHN Gas Limited, has  recently in Lagos, Nigeria signed a Natural Gas distribution infrastructure network contract with the Lagos Free Zone (LFZ). The gas supply agreement is worth $25 million and the contract term is to develop, own and operate a natural gas distribution infrastructure network within the Lagos Free Zone (LFZ).

The deal would see the partners deliver five million standard cubic feet of natural gas per day (5mscf/d) to the Lagos Free Zone, starting from 2024, with the volume of gas supply expected to progress over time to 40mscf/d as more businesses come into the free zone.

 The Gas Infrastructure Development Agreement with the Lagos Free ceremony was held on Monday, May 16, 2022 at the Corporate Head Office of LFZ in Victoria Island, Lagos. And in actualizing this opportunity, the Consortium shall incorporate a Special Purpose Vehicle (SPV): Optimera Energy LFZ Enterprise (Optimera Energy) within the Lagos Free Zone (LFZ).

 “The Optimera consortium is made up of like-minded shareholders passionate about a common goal: accelerating the further growth of domestic gas utilization in Nigeria. Having reliable dedicated gas supply infrastructure installed in the LFZ adds tremendous value to existing industrial concerns and will increase the Zone’s attractiveness to future customers.

“The Petroleum Industry Act (PIA) provides the necessary regulatory environment for projects such as these to succeed in Nigeria. We look forward to working collaboratively with the Nigerian Midstream & Downstream Regulatory Authority (NMDPRA) in this project’s development and operation phases,”Mrs. Audrey Joe-Ezigbo, MD, Optimera Energy, said

In his press response, The Managing Director & CEO of LFZ, Mr. Dinesh Rathi, restated his company’s commitment in working closely with consortium for successful and on time delivery of the project.

“The Consortium members bring over 50 years of experience and expertise in operating across the Natural Gas value chain from upstream production in the Niger Delta to downstream distribution to industries in Lagos. Our dedicated Project Team will work diligently with a strict adherence to the highest standards of safety, operational excellence, and regulatory compliance to deliver this project on time and under budget, as we have done within our respective portfolios,” She added.

In his press response, The Managing Director & CEO of LFZ, Mr. Dinesh Rathi, restated his company’s commitment in working closely with consortium for successful and on time delivery of the project.

 “In our continued efforts at Lagos Free Zone to provide a world-class industrial ecosystem that enhances the competitive positioning of Nigeria as a manufacturing hub, our partnership with the consortium of Falcon Corporation, ND Western Midstream Limited & FHN Gas Limited, is a landmark development.

With Lekki Port’s construction slated to be completed in December 2022, we needed to secure a reliable arrangement to meet the energy needs of our fast-growing tenant base, and we are confident that our partnership with the Consortium would help us realize the same. This is a unique transaction in the history of Nigeria’s downstream sector wherein a consortium formed of reputable upstream, midstream, and downstream companies have come together to ensure gas supply to LFZ, the sunrise economic epicentre of West Africa. Under this arrangement, the Consortium, through their special purpose vehicle, Optimera Energy, would deliver uninterrupted piped gas by early 2024 to all the enterprises within the Lagos Free Zone. We welcome the Consortium on this collective journey towards unlocking Nigeria’s true potential,” The Managing Director & CEO of LFZ, Mr. Dinesh Rathi, stated.