FG Secures Indian Firm’s Commitment for Offtake of Natural Gas for $4bn Steel Plant

Emmanuel Addeh in Abuja

The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, has successfully secured a commitment from Jindal Group to offtake about 450 million metric standard cubic feet per day (MMscfd) of natural gas.

A statement by the minister’s spokesman, Louis Ibah, said that the deal  comprises 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.

The project, it said  is expected to create thousands of jobs and position Nigeria as a regional powerhouse for industrialisation and high-grade steel production.

According to the statement, the agreement was sealed after a meeting in New Delhi, India between Ekpo and Jindal Group Chairman, Mr. Naveen Jindal, with discussions underway to finalise 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 also agreed to lease 300 hectares in the ISHIP for the project.

During the meeting, Jindal expressed the 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 industrialisation and economic growth.

He said Jindal Group’s interest in Nigeria stems 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.

 Ekpo 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 take-off and implementation.

An elated Ekpo said the project aligns with President Bola Tinubu’s vision for Nigeria’s gas industry, even as he emphasised 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 the Nigerian National Petroleum Company Limited (NNPC) focused on housing heavy manufacturing companies in industries such as fertiliser, 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.

Also on the entourage were the Group Chief Executive Officer  of the  NNPC, Mr. Mele Kyari; NNPC’s Executive Vice Presidents 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.

Earlier on his X handle, Ekpo had announced his arrival in New Delhi, India, accompanied by Kyari, where he said he was warmly received by Mr. Ahmad Tijani Lawal, Acting High Commissioner for Nigeria to India, and Mr. Mukesh Sharma, Country Head of Jindal Nigeria Ltd.

“Our visit is focused on engaging in strategic discussions with the Jindal Group to advance plans for the establishment of a 10 million tons per annum High Briquetted Iron (HBI) Steel Plant and a 650MW Power Plant in the Ibom Solutions Gas Hub, Akwa Ibom State.

“This project will require about 450MMscfd of gas for startup and aligns with the federal government’s commitment to gas-based industrialization and driving economic growth in Nigeria,” he stated.