The Guardian (Nigeria)

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

- By Femi Adekoya

ACONSORTIU­M 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 Energ y 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 consor - tium on this collective jour - ney 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.”

Newspapers in English

Newspapers from Nigeria