Ondo signs deal for CNG plant to serve industry and transport
- OCTAGRAM Fusion CNG and ONDIPA signed a long-term agreement on 14 October 2026.
- The proposed 9 MMSCFD CNG mother station will sit in Ore industrial Park, Omotosho.
- The project still needs a Licence to Construct and financial close before building starts.
A Nigerian energy infrastructure firm, OCTAGRAM Fusion CNG Limited, and the Ondo State Development and Investment Promotion Agency (ONDIPA) have signed a long-term agreement to site a proposed compressed natural gas (CNG) plant in the Ore industrial Park at Omotosho, Ondo State.
The deal was executed on 14 October 2026, according to a joint announcement by the two parties. The plant is planned as a "mother station" with capacity to compress 9 million standard cubic feet of gas per day (9 MMSCFD).
For ordinary Nigerians, the project matters most for what it could do to fuel costs and industrial activity in the South-West. CNG is being promoted by the federal government as a cheaper alternative to petrol, and industrial users say reliable gas supply remains a major cost headache.
Why Omotosho
The site sits close to existing national gas pipelines, which the partners say should make it easier to secure feedstock, subject to technical and commercial arrangements. From there, gas would be compressed and moved by high-pressure containers to customers who are not connected to pipelines — a system often called a virtual pipeline.
The partners expect the station to serve manufacturers, commercial vehicle fleets, independent CNG distributors and other energy-heavy businesses. Target areas include industrial clusters and transport corridors linking Ondo with Lagos, Ekiti, Ogun, Edo, Oyo and nearby markets.
OCTAGRAM's chief executive, Olutunde Odeyale, said the company's plan is built on a simple gap: Nigeria has large gas reserves, but many industrial and commercial users still cannot get reliable, competitively priced gas.
ONDIPA's chief executive, Barrister Emmanuel Omomowo, said the agency sees the agreement as part of efforts to make Ondo a more attractive destination for energy-intensive industries and private investment. The project is also expected to support the industrial drive of Governor Lucky Orinisan Aiyedatiwa's administration, according to the announcement.
What happens next
The project is not yet cleared to build. OCTAGRAM obtained a Licence to Establish (LTE) from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in May 2026, but it is still working towards a Licence to Construct (LTC).
Engineering work, commercial talks and financing arrangements are also ongoing. The partners said the project remains subject to regulatory approvals, satisfactory technical arrangements and completion of commercial and financing requirements.
They added that further announcements will come as the project hits milestones, including the LTC and the start of construction. No timeline for construction or start-up was given in the announcement.
