- Optimera Energy’s deal is a signed 20-year gas infrastructure development agreement with LFZ for gas distribution.
- The project is scheduled for completion and inauguration by the last quarter of 2024.
Yesterday, the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo and the Special Adviser to the President on Energy, Mrs Olu Verheijen, flagged off the construction of a gas distribution infrastructure built by Optimera Energy. The landmark 25 million standard cubic feet per day (25mmscuf/d) is at the Lagos Free Zone (LFZ). The project, scheduled for completion and inauguration by the last quarter of 2024, aims to distribute natural gas to the companies operating within the zone. This will ultimately help address the energy access challenge and high operating costs.
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 the 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.