– Plant to offtake 450Mmscf/day of natural gas
Mkpoabasi Udoma
Port Harcourt — In a major boost for industrialization, Nigeria has secured a commitment from India’s Jindal Group to offtake 450 million metric standard cubic feet per day of natural gas, underpinning a $4 billion investment in a new hot briquetted iron steel plant in the country.
Announcing the investment, the Minister of State for Petroleum Resources (Gas) Mr Ekperikpe Ekpo, said the steel plant will be located at the Ibom Solutions Hub Industrial Park, ISHIP – a free zone facility in Akwa Ibom State.
Ekpo who is currently in India, together with the Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari, for discussions with Jindal Group Chairman, Mr. Naveen Jindal, said negotiations were underway to finalize the Gas Sales and Purchase Agreement, GSPA, for the gas supply.
The Minister on his official X handle further disclosed that the Jindal Group are optimistic about Nigeria’s investment potential, citing the country’s abundant natural gas resources as a key attraction.
He assured that the Federal Government remained committed to fostering a business-friendly environment, offering incentives to secure further investments in the gas sector.
“This project will not only create thousands of jobs but also position Nigeria as a leader in industrialization and high-grade steel production across the region.
“Following our constructive engagement with the Chairman of Jindal Group, Mr. Naveen Jindal, discussions are underway to finalize the GSPA for the supply of gas to the steel plant.
“ISHIP has also agreed to lease 300 hectares of land for the project’s development.
“This project is a testament to President Bola Tinubu’s vision for gas-based industrialization, and we remain focused on attracting further investments that will drive economic growth.
“With this project, Nigeria takes another major step towards becoming a manufacturing hub powered by gas. I am optimistic that this partnership will yield immense benefits for both the economy and the people,” Ekpo tweeted on Tuesday.
