Lagos Free Zone sign ₦10 billion gas deal with Falcon Corporation

The Lagos Free Zone has signed a gas contract worth over ₦10 billion with Falcon Corporation, ND Western, and FHN consortium.

The gas infrastructure development agreement was signed in Lagos on Monday.

The project allows the consortium of Falcon Corporation, ND Western Midstream Limited, and FHN Gas Limited, to exclusively build, own, and operate a natural gas distribution infrastructure network within the LFZ.

To actualise the opportunity, the consortium said it would incorporate a Special Purpose Vehicle (SPV) – Optimera Energy LFZ Enterprise (Optimera Energy) -within the LFZ.

Managing Director, Optimera Energy, Audrey Joe-Ezigbo, while speaking at the event said, “The Optimera consortium is made up of like-minded shareholders passionate about a common goal: accelerating the further growth of domestic gas utilisation 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 was a significant part.

“The Petroleum Industry Act 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 in this project’s development and operation phases.

“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.”

On his part, Managing Director & CEO of LFZ, Dinesh Rathi, during his interaction with the press, remarked, “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.