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

Peter Uzoho

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.

“Our mandate is to execute projects to deepen domestic Natural Gas consumption and utilisation in Nigeria and across Africa,” she added.

In his remarks, the Chief Executive Officer of Lagos Free Zone Company, Mr. Dinesh Rathi, stated that the groundbreaking was a critical milestone for them at the zone.

He said the project would enable the company to get one step closer to their goal of providing reliable and cleaner energy solutions to meet the needs of existing and future tenants at LFZ.

“With the start of commercial operations at Lekki Port, delivery of piped natural gas to each enterprise at LFZ would further realize our vision to be the preferred industrial hub in West Africa with world-class infrastructure,” Rathi stated.

Highlighting the importance of the project to Nigeria’s social, economic development,

Ekpo, described the project as a significant milestone in the country’s journey toward a more sustainable and energy-efficient future.

While congratulating Optimera Energy for its visionary approach and commitment to advancing the nation’s energy landscape, the minister explained that the development of a 25 million standard cubic feet per day City Gate Station, scalable to 100 million standard cubic feet per day, along with the necessary ancillary infrastructure, reflected not only the company’s dedication but also a shared vision for a thriving and resilient Nigeria.

“Natural Gas is a pivotal component in our energy matrix, offering cleaner and more efficient solutions. The infrastructure we are launching today is not just about pipes and stations but about powering communities, industries, and dreams. It is about creating a foundation for economic growth, job creation, and environmental sustainability. It is about making Nigeria an economic giant using our abundant gas resources,” he said.

Also speaking at the occasion, the Special Adviser to the President on Energy, Verheijen, stated that the partnership between Optimera Energy and LFZ was a landmark achievement in Nigeria’s energy sector.

She noted that the 20-year infrastructure development agreement signified more than just an investment but a testament to the companies’ commitment to harnessing Nigeria’s natural resources responsibly and efficiently.