OCTAGRAM Fusion CNG Limited (“OCTAGRAM”), a Nigerian energy infrastructure development company and the Ondo State Development and Investment Promotion Agency (“ONDIPA”) are pleased to announce a strategic agreement for the development of a proposed 9 million standard cubic feet per day (MMSCFD) Compressed Natural Gas (CNG) mother station within the Ore industrial Park in Omotosho area of Ondo State.
The long-term agreement, executed on 14 October 2026, provides for the location of the proposed facility within the industrial park, in proximity to existing national natural gas pipeline infrastructure. This strategic location is expected to facilitate access to gas feedstock, subject to the necessary technical and commercial arrangements, while positioning the project to serve industrial and transportation energy demand across Ondo State and the wider southwestern Nigerian market.
The agreement follows OCTAGRAM’s successful attainment of a Licence to Establish (LTE) from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in May 2026, representing an important regulatory milestone in the project’s development.
The company is currently progressing the requirements for its Licence to Construct (LTC), alongside engineering development, commercial arrangements and other preparatory activities.
Supporting Nigeria’s Gas-Led Industrial Development
The proposed facility is designed to provide a reliable source of compressed natural gas for industrial manufacturers, commercial transportation fleets, independent CNG distribution operators and other energy-intensive businesses.
At its planned production capacity of 9 MMSCFD, the station is expected to support the expansion of virtual pipeline infrastructure, enabling natural gas to be transported by specialised high-pressure containers and delivered to customers beyond the reach of conventional gas pipeline networks.
The investment aligns with Nigeria’s broader ambition to increase domestic natural gas utilisation, diversify energy sources and improve industrial competitiveness.
The development is expected to support the efforts of the administration of Governor Dr. Lucky Orinisan Aiyedatiwa in the drive to growing Ondo State industrial ecosystem, attract complementary investment and create economic opportunities across gas transportation, logistics, engineering, operations and associated services.
A Strategic Partnership for Industrial Growth
Speaking on the agreement, Barrister Emmanuel Omomowo, Chief Executive Officer ONDIPA, said:
“Ondo State remains committed to attracting investments that unlock our natural resources, strengthen industrial infrastructure and create sustainable economic opportunities for our people.
“Our agreement with OCTAGRAM Fusion CNG represents another important step towards positioning Ondo State as a competitive destination for energy-intensive industries and private-sector investment.
“We welcome this project and look forward to supporting its successful development in accordance with the applicable regulatory framework.”
Olutunde Odeyale, CEO, OCTAGRAM Fusion CNG Limited, commented:
“Our investment thesis is built around a clear commercial opportunity: Nigeria has substantial natural gas resources, yet many industrial and commercial consumers remain unable to access reliable and competitively priced gas.
“By locating our proposed mother station close to existing gas transmission infrastructure at Omotosho, we intend to bridge that gap through an efficient CNG production and distribution platform.
“The agreement with ONDIPA and our attainment of the Licence to Establish are significant steps towards delivering that vision. Our immediate priorities are to complete the remaining regulatory processes, advance our infrastructure development plans and establish long-term relationships with customers and commercial partners.”
Expanding Access to Natural Gas
The proposed facility is expected to serve customers within an economically viable distribution radius of Omotosho, including industrial clusters and transportation corridors connecting Ondo State with Lagos, Ekiti, Ogun, Edo, Oyo and neighbouring markets.
OCTAGRAM intends to deploy a distribution model combining mother-station compression capacity with specialised CNG transportation equipment and downstream delivery infrastructure.
The company is actively exploring long-term gas supply and offtake arrangements with industrial consumers, power producers, fleet operators, CNG daughter-station operators and other prospective customers.
The project remains subject to the necessary regulatory approvals, satisfactory technical arrangements and completion of commercial and financing requirements.