FG Inaugurates Optimera Energy's 25mmscuf/d Gas Distribution Infrastructure at Lagos Free Zone
Company signs 20-year gas infrastructure development agreement with host community
The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo and the Special Adviser to the President on Energy, Mrs. Olu Verheijen, yesterday, flagged off the construction of a landmark 25 million standard cubic feet per day (25mmscuf/d) gas distribution infrastructure being built by Optimera Energy, at the Lagos Free Zone (LFZ).
The project which is scheduled for completion and inauguration by the last quarter of 2024, was intended to distribute natural gas to the companies operating within the zone and ultimately help to address the energy access challenge and high operating cost in the zone.
However, Optimera Energy had already signed a 20-year gas infrastructure development agreement with the Lagos Free Zone Company to scale up gas distribution within the zone from the initial 25mmscf/d to 40mmscuf/d and 100mmscuf/d in a phased development approach.
A Special Purpose Vehicle, Optimera Energy LFZE, is a consortium of three Nigerian upstream, midstream and downstream gas firms including Falcon Corporation Limited, First Hydrocarbon Nigeria (FHN) Gas Limited and ND Western Midstream Limited.
The three partners are affiliates of upstream companies with combined gas reserves of over four trillion cubic feet (tcf) currently producing over 350MMscf/d into the Nigerian domestic gas market.
Speaking during the groundbreaking ceremony, the Managing Director of Optimera Energy, Mrs. Audrey
Joe-Ezigbo, further explained that the gas distribution infrastructure comprised 25MMScf/D City Gate Station, scalable to 100MMScf/D.
She said the facility would also have necessary ancillary infrastructure which includes 10km distribution lines within the zone as well as a 6.5km x 10 inches gas pipeline from the Escravos – Lagos Pipeline System tie-in point in the Lekki corridor, outside the zone, to Optimera City Gate Station at the Lagos Free zone.
Joe-Ezigbo revealed that Optimera Energy signed a 20-year Gas Infrastructure Development Agreement (GIDA) with the Lagos Free Zone Company (LFZC) to connect off-takers to their gas distribution infrastructure within the zone.
“The LFZC has invested over $2.5 billion in building a world-class facility integrated with Lekki Deep Seaport in the Zone, and we are excited to be part of this infrastructural development in our nation, Nigeria, particularly as this project is fully aligned with the nation's Decade of Gas aspirations,” she added.
According to her, Optimera Energy was established to address gaps in energy access while creating sustainable value for its stakeholders.
"We are committed to championing Nigeria's energy transition to cleaner fuels by leveraging on the Nation's abundant Natural Gas low-carbon resources.
"We are working to ensure that Nigeria's Natural Gas resources are responsibly and efficiently utilized from the upstream and downstream sectors of the value chain.