The Federal Government has successfully secured a commitment from Jindal Group to offtake about 450 million metric standard cubic feet per day (MMscfd) of natural gas to underpin a $4 billion investment in a 10 million tonnes per annum Hot Briquetted Iron (HBI) Steel Plant to be located at Ibom Solutions Hub Industrial Park (ISHIP), a free zone facility in Akwa Ibom State.
This project is expected to create thousands of jobs and position Nigeria as a regional powerhouse for industrialization and high-grade steel production.
According to the statement by the Spokesman for the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, Louis Ibah, the agreement was sealed after a meeting in New Delhi, India, between Ekpo and Jindal Group Chairman Mr Naveen Jindal. Discussions are underway to finalize the Gas Sales and Purchase Agreement (GSPA) for the supply of natural gas to the Indian firm.
As part of the agreement, ISHIP and Jindal have agreed to lease 300 hectares in the ISHIP for the project.
During the meeting, he said that Jindal expressed his company’s interest in investing in Nigeria due to the long history of cooperation between the two nations and his desire to support Nigeria’s drive for industrialization and economic growth.
He said Jindal Group’s interest in Nigeria stemmed from the country’s strategic position in Africa and its vast natural gas reserves, which are essential for producing high-quality steel using new technology.
Ekpo, on his part, informed Jindal Group of the Federal Government’s commitment to providing an enabling environment for investors, including significant incentives to encourage and protect investments in the gas industry. The gas minister assured Jindal Group of the safety and security of their investment, highlighting Nigeria’s conducive business environment and the government’s dedication to supporting the project’s successful takeoff and implementation.
An elated Ekpo said the project aligns with President Bola Tinubu’s vision for Nigeria’s gas industry, even as he emphasized the need for open and constructive dialogue to attract more investments and secure a thriving future for the sector.
ISHIP is a joint venture of NNPC Limited focused on housing heavy manufacturing companies in industries such as fertilizer, metal manufacturing, and petrochemicals.
Ekpo was accompanied on the visit, which also included a tour of Jindal Steel Plant in Angul, India, by a high-powered delegation comprising the Acting High Commissioner to India, Mr. Ahmed Tijani Lawal; GCEO of NNPC Ltd., Mr. Mele Kolo Kyari; NNPC Ltd. EVPs for Upstream and Gas, Power & New Energies, Mrs. Oritsemeyiwa Eyesan and Mr. Olalekan Ogunleye, respectively; and Managing Director of Ibom Solution Hub Industrial Park (ISHIP), Mr. Ekene Obadiegwu.
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