Tetracore GTL Limited, a subsidiary of Tetracore Energy Group, has signed an agreement with UK-based Velocys Technologies Limited to develop a modular gas-to-liquids facility in Atakabo, Ogun State.

The project, outlined under a memorandum of understanding, will convert natural gas into cleaner liquid fuels and industrial products. The planned plant is designed to process about 5,000 barrels per day when fully operational.

As part of the partnership, Velocys will provide its Fischer-Tropsch technology, including licensing, engineering design support, catalyst systems, and technical advisory services. The company’s modular technology is expected to help improve efficiency and scalability in synthetic fuel production.

The facility is projected to begin commercial operations by the third quarter of 2028. It is expected to serve both local demand and export markets, supporting efforts to expand gas utilisation in Nigeria.

Tetracore said the development aligns with its broader goal of driving gas monetisation and industrial growth. The company added that the project could support job creation, infrastructure development, and improved energy security.

Under the arrangement, Tetracore will handle project development activities such as financing coordination, feedstock planning, regulatory approvals, and stakeholder engagement, while Velocys will serve as the technology and engineering partner.

The collaboration reflects growing interest from international energy technology firms in Nigeria’s gas sector as the country continues to push for a more gas-driven industrial economy.