The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has successfully negotiated a major deal with Jindal Group for the offtake of 450 million metric standard cubic feet per day (MMscfd) of natural gas, integral to a $4 billion investment plan for 10 million tones per annum Hot Briquetted Iron (HBI) steel plant. This facility will be situated at the Ibom Solutions Hub Industrial Park (ISHIP) in Akwa Ibom State, to create thousands of jobs and enhance Nigeria’s industrial capacity, thereby positioning it as a leader in high-grade steel production. The agreement was finalized following discussions between Ekpo and Jindal Group Chairman, Naveen Jindal, in New Delhi, India.
Under the terms of the deal, the ISHIP and Jindal Group will lease 300 hectares of land for the construction of the steel plant. Jindal expressed enthusiasm for investing in Nigeria, citing the nation’s strategic significance in Africa and its abundant natural gas reserves, essential for producing high-quality steel. Ekpo reassured the group of the Nigerian government’s dedication to fostering a favorable business environment, including significant incentives and investment security to support the project.
Ekpo also noted that this initiative aligns with President Bola Tinubu’s vision for the country’s gas industry and the broader goal of gas-based industrialization. The ISHIP, a collaborative effort with the Nigerian National Petroleum Company (NNPC), aims to accommodate industries involved in fertilizer production, metal manufacturing, and petrochemicals. Additionally, plans for a 650MW power plant are included to support the steel plant’s operations, further enhancing Nigeria’s strategy for gas-driven industrialization.