The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo has achieved success and secured a pivotal commitment from the Jindal Group to offtake an impressive 450 million metric standard cubic feet per day (MMscfd) of natural gas. This significant commitment underpins a transformative $4 billion investment to establish a cutting-edge Hot Briquetted Iron (HBI) Steel Plant, boasting a remarkable production capacity of 10 million tonnes annually. Strategically situated in the Ibom Solutions Hub Industrial Park (ISHIP), a designated free zone in Akwa Ibom State, this project is poised to reinvent itself in Nigeria’s industrial landscape.
We are poised to generate thousands of sustainable jobs, directly bolstering the local economy and elevating Nigeria’s status as a leading regional powerhouse in high-grade steel production and industrialization. The successful culmination of this agreement was achieved during a strategic meeting in New Delhi, India, where Rt. Hon. Ekpo engaged in crucial discussions with Mr. Naveen Jindal, Chairman of the Jindal Group. Together, they outlined the pathways to finalize the Gas Sales and Purchase Agreement (GSPA), essential for securing the supply of natural gas to this visionary venture.
In a significant move reflecting their commitment, ISHIP and Jindal have agreed to lease an expansive 300 hectares within the ISHIP to support this landmark project. This alliance marks a decisive step forward, not only advancing Nigeria’s industrial ambitions but also strengthening our international trade relationships in the energy and manufacturing sectors. The future is bright, and we are ready to seize the opportunities ahead.
During the meeting, 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 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. 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
