The Federal Government has disclosed plans to partner with India’s Jindal Group to establish a 10 million tonnes per annum High Briquetted Iron (HBI) steel plant alongside a 650-megawatt (MW) power plant in Akwa Ibom State.

The collaboration aims to address the country’s energy needs through enhanced power generation capacity and bolster the steel industry. This comes in as Nigeria is working to reduce its reliance on oil by promoting investments in its largely untapped gas reserves, estimated at 200 trillion cubic feet.

This was revealed by the Minister of state for petroleum Resources (Gas), Ekperikpe Ekpo, following a visit to India to engage with senior officials of the company.

Ekpo, who was also in company of the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Corporation (NNPC) Limited, Mele Kyari noted that the visit is solely 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 in the country.

Ekpo emphasised that the project will require about 450MMscfd of gas for startup and it aligns with the Federal Government’s commitment to gas-based industrialisation and driving economic growth in Nigeria.

It had been previously reported that the federal government approves UTM Offshore Limited’s proposal to construct a 2.8 million-tonne floating LNG plant in Akwa Ibom State.

This facility, which is the first floating LNG project in Nigeria, is expected to cost over two billion dollars.

The company which has been granted a licence by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to construct the plant, will have an annual production capacity of 2.8 million metric tons.

The plant which is scheduled for commissioning in 2028 with the first gas output anticipated in 2029 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 per cent stake in the project.