Wednesday, 31st May 2023

Consortium to stake $25m on developing gas infrastructure in LFZ

By Femi Adekoya
17 May 2022   |   4:28 am
A consortium of Falcon Corporation, ND Western Midstream Limited and First Hydrocarbon Nigeria (FHN) Gas Limited, have signed a gas infrastructure development agreement worth over $25 million...

Chief Executive Officer, Lagos Free Zone, Dinesh Rathi (left); Managing Director, Falcon Corporation Limited, Prof. Joseph Ezigbo; Chief Executive Officer, ND Western Limited, Mr. Eberechukwu Oji; Managing Director, Optimera Energy, Mrs. Audrey Joe-Ezigbo; Managing Director, Fintech & Infrastructure, Tolaram, Mr. Navin Nahata and Managing Director, First Hydrocarbon Nigeria Limited, Mr. Femi Bajomo during the signing ceremony of the Gas Infrastructure Development Agreement for Lagos Free Zone, held in Lagos, yesterday.

A consortium of Falcon Corporation, ND Western Midstream Limited and First Hydrocarbon Nigeria (FHN) Gas Limited, have signed a gas infrastructure development agreement worth over $25 million in the Lagos Free Zone (LFZ).

According to the Chief Financial Officer, FHN, Kayode Olatunbosun, the investment, which is for the construction phase, would be funded through equity. He stated this during the agreement signing ceremony for the gas development infrastructure.

The consortium has been selected to build exclusively, own, and operate a natural gas distribution infrastructure network within the LFZ and would incorporate a Special Purpose Vehicle (SPV): Optimera Energy LFZ Enterprise (Optimera Energy) within the Lagos Free Zone (LFZ).

Earlier, the Managing Director and Chief Executive Officer, LFZ, Dinesh Rathi, said the Consortium, through their SPV, 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,” he stressed.He added that in its continued efforts at Lagos Free Zone to provide a world-class industrial ecosystem that enhances the competitive positioning of Nigeria as a manufacturing hub, its partnership with the consortium of Falcon Corporation, ND Western Midstream Limited and FHN Gas Limited, is a landmark development.

He noted that with the Lekki Port’s construction slated to be completed in December 2022, there was a need to secure a reliable arrangement to meet the energy needs of its fast-growing tenant base, expressing confidence that its partnership with the Consortium would help LFZ realise 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. “

Also speaking, the Managing Director, Optimera Energy, Mrs. Audrey Joe Ezigbo, said, “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.”

Ezigbo noted that the endeavour would be a big step towards actualising the objectives of the ‘Decade of Gas‘ initiative, of which gas based industrial growth is a significant part.

“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,” she said.

She added: “The Consortium members bring over so many 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.”