Nigeria Secures Major Gas Offtake Agreement with Jindal Group for Steel Plant Development
In a groundbreaking move, Nigeria has secured a commitment from the Jindal Group to offtake 450 million metric standard cubic feet per day (MMscfd) of natural gas to support a $4 billion investment in a steel plant. The project, announced by Minister of State for Petroleum Resources (Gas) Hon. Ekperikpe Ekpo, will focus on a 10-million-tonnes-per-annum Hot Briquetted Iron (HBI) Steel Plant at the Ibom Solutions Hub Industrial Park (ISHIP) in Akwa Ibom State.
“This commitment marks a substantial investment that will help position Nigeria as a leading force in steel production and industrialization across the region,” Ekpo shared in a statement, following his meeting with Jindal Group executives in New Delhi, India. The project is anticipated to generate thousands of jobs and significantly boost Nigeria’s industrial output.
Ekpo highlighted ongoing discussions to finalize the Gas Sales and Purchase Agreement (GSPA) for gas supply to the plant. ISHIP has also agreed to lease 300 hectares of land for the development of this facility. “Mr. Jindal expressed strong optimism regarding Nigeria’s strategic advantage and abundant natural gas resources as compelling factors for investment,” Ekpo noted.
The minister emphasized that this collaboration aligns with President Bola Tinubu’s gas-based industrialization vision, underscoring Nigeria’s potential as a manufacturing powerhouse. “This project represents a key milestone in our commitment to driving economic growth and creating a business-friendly environment conducive to major investments in the gas sector,” Ekpo added.
With this strategic partnership, Nigeria takes another bold step towards becoming a leading manufacturing hub in Africa, powered by its vast gas resources.
