Tetracore GTL Limited, a subsidiary of Tetracore Energy Group (TEG), has signed a Memorandum of Understanding (MOU) with UK-based Velocys Technologies Limited, a globally recognized provider of Fischer-Tropsch synthetic fuels technology, to support the development of Tetracore’s proposed modular Gas-to-Liquids (GTL) facility in Atakabo, Ogun State, Nigeria.
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The agreement marks a significant milestone in Tetracore’s strategic industrialization and gas monetization agenda, positioning the company to advance one of Nigeria’s emerging modular GTL developments aimed at converting natural gas into cleaner, higher-value liquid fuels and industrial products.
Under the MOU, Velocys is expected to provide proprietary Fischer-Tropsch technology licensing, process design support, engineering services, catalyst systems, and technical advisory support for the planned 5,000 barrels-per-day GTL plant.
The project will leverage Velocys’ proprietary microchannel Fischer-Tropsch technology platform, designed for modular deployment and optimized synthetic fuel production.
The Atakabo GTL project forms part of Tetracore’s broader strategy to deepen gas utilization, industrialize Africa’s natural gas resources, and develop long-term energy infrastructure capable of supporting economic growth, industrial manufacturing, cleaner fuels, and regional energy security.
The project is targeted to achieve commercial operations by Q3 2028, positioning it as one of the emerging modular GTL developments within the region. The facility is expected to support both the domestic Nigerian market and export opportunities across regional and international energy markets.
Speaking on the strategic significance of the project, Olakunle Williams, President/CEO of Tetracore Energy Group, stated:
“Africa’s next industrial growth phase will depend heavily on how effectively we monetize and industrialize our natural gas resources. Projects such as this are not simply energy projects — they are industrial development platforms capable of driving manufacturing, infrastructure growth, energy security, export competitiveness, and long-term economic value creation.”
He added:
“Tetracore remains focused on developing transformative energy infrastructure across the gas value chain. Our broader objective is to build integrated projects that attract global partnerships, strengthen local industrial capacity, create jobs, support cleaner fuel adoption, and position Africa more competitively within the evolving global energy landscape.”
Commenting on the Velocys partnership and execution of the MOU, Oladayo Williams, Managing Director of Tetracore Energy Group, stated:
“The execution of this MOU represents a major advancement for the Atakabo GTL project. Securing a globally recognized technology partner such as Velocys significantly strengthens the technical and commercial positioning of the development and provides a strong foundation as we move towards the next stages of project structuring and execution.”
He further stated:
“Velocys brings globally respected Fischer-Tropsch technology expertise, while Tetracore continues to advance the critical elements required for project delivery, including feedstock strategy, infrastructure planning, financing coordination, stakeholder engagement, and market development. This collaboration reflects the kind of international technical partnerships required to unlock large-scale industrial energy projects across Africa.”
The proposed GTL facility is expected to produce synthetic diesel, naphtha, and other refined liquid products targeted at industrial, commercial, domestic, and export energy markets.
As part of the arrangement, Tetracore GTL will lead project development activities including feedstock supply, permitting, financing coordination, infrastructure development, stakeholder engagement, and overall project execution. Velocys will serve strictly as the technology licensor and engineering support provider to the project.
The signing also reflects growing international confidence in Nigeria’s gas industrialization potential and reinforces Tetracore’s expanding footprint across strategic gas infrastructure, gas-to-power, compressed natural gas (CNG), and industrial energy solutions across West Africa.
The Atakabo GTL initiative aligns with broader national objectives around gas commercialization, industrial development, cleaner fuel alternatives, and the Federal Government’s push toward a gas-driven industrial economy.
Tetracore noted that the execution of the MOU represents an important early-stage framework towards the negotiation of definitive project agreements and subsequent development phases.
