Indian Company to Build $4 Billion Steel Plant in Nigeria in Exchange For Natural Gas
- The Nigerian government has secured a mouthwatering deal with an Indian company to lift natural gas in exchange for a $4 billion steel plant
- The plant will be at Ibom Solutions Hub Industrial Park, a free zone in Akwa Ibom State.
- The project is expected to create thousands of jobs and position Nigeria as a hub for industrialisation and high-grade steel production.
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Minister of State for Petroleum Resources (Gas), Ekeperikpo Ekpo, has secured a commitment from Jindal Group, an Indian firm, to offtake about 450 million metric standard cubic feet of natural gas daily for a $4 billion investment in a 10 million tonnes per annum steel plant.
The plant will be at Ibom Solutions Hub Industrial Park, a free zone in Akwa Ibom State.
Source: Getty Images
More jobs for Nigerians
According to a Punch report, the project is expected to create thousands of jobs and position Nigeria as a hub for industrialisation and high-grade steel production.
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The parties sealed the agreement at a meeting in New Delhi, India, with discussions ongoing to finalise the gas sales and purchase agreement (GSPA) for the natural gas supply to the Indian company.
As part of the deal, the parties have agreed to lease 300 hectares of the industrial park for the project.
The company expressed interest in investing in Nigeria due to the history of cooperation between the two nations and the drive to support Nigeria’s industrialisation drive.
The project to help Nigeria’s industrialisation drive
The firm disclosed that Jindal Group’s interest in Nigeria is due to the African country’s strategic position on the continent and its vast natural gas reserves, essential for producing high-quality steel using new technology.
The Nigerian minister informed Jindal Group of the Nigerian government’s commitment to providing an enabling environment for investors and enough incentives to encourage and protect investments in the gas industry.
Ekpo assured the company of the safety and security of investment, stressing Nigeria’s conducive business environment and the government’s dedication to supporting the project’s successful takeoff and implementation.
The Ibom Industrial Park is a joint venture of the Nigerian National Company Limited (NNPC) focused on hosting heavy manufacturing companies in industries such as fertiliser, metal, and petrochemicals.
Indian steel company speaks on leaving Nigeria
Legit.ng earlier reported that Aarti Steel Nigeria Limited has denied reports saying it plans to exit Nigeria due to the current economic challenges.
A report alleged that the Indian steel manufacturer was planning to exit Nigeria, with African Industries and Bhari bidding to acquire its assets.
According to a company statement, the reports are false and unfounded and do not reflect the company's intentions or actions.
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Source: Legit.ng
