The Federal Government is in discussions with Jindal Group, an Indian company, Jindal Group, to establish a steel and power plant in Akwa Ibom, a state in Nigeria’s South-South region.
This development was disclosed by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, on Sunday, following a visit to India to engage with senior officials of the company.
Ekpo revealed that the visit was accompanied by the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Corporation (NNPC) Limited, Mele Kyari.
The planned partnership aims to develop a 10 million tons per annum High Briquetted Iron (HBI) steel plant and a 650MW power plant within the Ibom Solutions Gas Hub in Akwa Ibom State.
“I have just arrived in New Delhi, India, accompanied by Mr. Mele Kyari, GCEO of NNPC Ltd., and we were 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,” Ekpo said.
What you should know
Nigeria is working to reduce its reliance on oil by promoting investments in its largely untapped gas reserves, estimated at 200 trillion cubic feet.
- A significant portion of the country’s gas production is currently either flared or re-injected into wells.
- Nairametrics previously reported that the federal government approved UTM Offshore Limited’s proposal to construct a 2.8 million-tonne floating LNG plant in Akwa Ibom State. This facility, the first floating LNG project in Nigeria, is expected to cost over $2 billion.
- The Nigerian Midstream and Downstream Petroleum Regulatory Authority has granted the company a licence to construct the plant, which will have an annual production capacity of 2.8 million metric tons.
- Located offshore in the oil-rich Niger Delta, the plant is scheduled for commissioning in 2028, with the first gas output anticipated in 2029.
- The facility will produce Liquefied Natural Gas (LNG), petroleum gas, and condensate.
- The company also signed a deal with the Nigerian National Petroleum Co. Ltd., which acquired a 20% stake in the project.
SOURCE: NAIRAMETRICS
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