The Federal Government has signed a $1.2 billion agreement with Chinese state-owned CNCEC to revamp a crucial gas processing plant at Ikot Abasi, Akwa Ibom State to boost Nigeria’s aluminium production.
This was disclosed in a statement by the Minister of State for Petroleum (Gas), Epkerikpe Ekpo on Tuesday.
The Minister said the contract signed with BFI Group—the main investor in the Aluminum Smelter Company of Nigeria, represents the first step toward restarting the long-dormant smelter.
The facility has faced years of inactivity due to legal disputes and financial difficulties, and this move aims to address those issues and revitalize the sector.
Ekpo emphasized that the deal would involve CNCEC revitalizing the 135 million standard cubic feet per day gas processing plant at the idle smelter. Once operational, the plant would enable the smelter to produce approximately 300,000 tons of aluminium annually, significantly boosting Nigeria’s aluminium production capacity.
He stated that restarting the plant would enable Nigeria to develop multiple stages of the aluminium production process, positioning the country as a major producer of aluminium both in Africa and on the global stage.
The statement reads, “It brings me great satisfaction to announce a pivotal agreement between BFI Group and CNCEC International to revive the long-dormant 135MMscfd Gas Processing Plant at ALSCON in Ikot Abasi, Akwa Ibom State.
“This $1.2 billion investment marks a historic step forward for Nigeria’s industrial sector, placing ALSCON back on the path to becoming a leading aluminum producer for both domestic and international markets, with an annual capacity of 300,000 metric tonnes.
“This ‘epoch-making’ partnership reflects the steadfast commitment of President Bola Tinubu to foster investments in natural gas utilization, supporting Nigeria’s industrialization, economic growth, and development. I commend the collaborative synergy between BFI Group and CNCEC International, as well as the fruitful relationship between the governments of Nigeria and China that is driving this ambitious vision forward.
“Through this agreement, I am confident that we will soon see the necessary actions taken to restart the Gas Processing Facility, marking a crucial first phase to reignite ALSCON’s full potential. The reactivation of ALSCON promises to reshape Nigeria’s aluminum sector, using natural gas to position the country as a significant player in Africa and on the global stage.”
Ekpo congratulated CNCEC and BFI Group for reaching this significant milestone, expressing optimism that Nigeria looks forward to the swift and successful delivery of the project.
He emphasized the importance of timely execution to realize the benefits of the revived aluminium production capacity for the country.
“I congratulate both BFI Group and CNCEC International on reaching this milestone and look forward to seeing this project delivered on time and within budget, supported by the companies’ expertise and dedication,” the minister added.
It was previously reported that ALSCON’s Managing Director, Dmitriy Zaviyalov, had revealed that restarting the plant would require a $500 million investment.
The funds would be used to revive dormant equipment and acquire power-generating sets to address ongoing energy challenges, ensuring the plant’s efficient operation once it is fully revived.
