Falcon, NDWestern, FHN Form an SPV For Gas Infrastructure in the Lagos Free Zone

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A consortium of companies including Falcon Corporation, ND Western Midstream Limited and FHN Gas Limited, has been selected to build exclusively, own, and operate a NaturalGas distribution infrastructure network within the Lagos Free Zone (LFZ) (To actualize this opportunity, the Consortium shall incorporate a Special Purpose Vehicle (SPV): Optimera Energy LFZ Enterprise (Optimera Energy) within the Lagos Free Zone (LFZ).

The consortium parties signed a Gas Infrastructure Development Agreement with the Lagos Free Zone to formalize this engagement.

“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”, declares Audrey Joe-Ezigbo, MD, Optimera Energy. “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 notes that the endeavour would be a big step towards actualizing the objectives of the ‘Decade of Gas’ initiative, of which gas-based industrial growth is a significant part. “The Petroleum Industry Act (PIA) provides the necessary regulatory environment for projects such as these to succeed in Nigeria. We look forward to working collaboratively with the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) 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.”

With Lekki Port’s construction slated to be completed in December 2022, the LFZ  “needed to secure a reliable arrangement to meet the energy needs of our fast-growing tenant base”, explains Dinesh Rathi, Managing Director & CEO of LFZ, “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. Under this arrangement, the Consortium, through their special purpose vehicle, Optimera Energy, would deliver uninterrupted piped gas by early 2024 to all the enterprises within the Lagos Free Zone”.

 


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1 comment

  1. Ma,
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