Nigeria Signs $1.2bn Deal to Revamp ALSCON Gas Plant
BFI Group, the core investor in Aluminum Smelter Company of Nigeria (ALSCON), has signed $1.2 billion deal with China National Chemical Engineering International Corporation Ltd. to revamp the 135MMscfd Gas Processing plant.
The contract signed between CNCEC and BFI Group – the core investor in the Aluminum Smelter Company of Nigeria – is the first step towards reviving the dormant smelter, which has been plagued by years of inactivity due to legal disputes and financial issues.
CNCEC is the biggest petrochemical engineering company in China and it is a technical partner to BFI Group, USA on the project. ALSCON is expected to utilise Nigeria’s natural gas resources to resuscitate the plant valued at about $3.5 billion and bring back the venture which is meant to cement Nigeria’s place as a major producer of aluminium for the domestic and international market.
Ekperikpe Ekpo, the Minister of State Petroleum Resources (Gas), in a statement issued by Louis Ibah, the Spokesman for the Minister described the deal as epoch-making and a testament to President Bola Tinubu’s commitment to encouraging investments in natural gas utilization for Nigeria’s industrialization, economic growth, and development.
The Petroleum Ministry said late on Monday that the deal would see CNCEC resuscitate the 135 million standard cubic feet per day gas processing plant at the dormant smelter.
ALSCON which has been dormant for nearly three decades, is poised to regain its position as a major aluminum producer for domestic and international markets, with a capacity to produce three hundred thousand (300,000) metric tonnes of aluminum per annum.
Represented by Permanent Secretary, Ministry of Petroleum Resources, Ambassador Nicholas Agbo Ella, Ekpo lauded the synergy between BFI Group and CNCEC International, highlighting the Chinese and Nigerian governments’ collaboration for mutual growth and development.
Ekpo expressed optimism that the agreement would expedite actions necessary to restart the Gas Processing Facility, which will be the first phase to restart the ALSCON Plant. Upon resumption, the plant is expected to catalyze Nigeria’s aluminum upstream and downstream sectors, utilizing natural gas and positioning the country as a major producer in Africa and globally.
The Gas Minister congratulated BFI Group and CNCEC International on achieving a significant milestone, trusting that the project will be delivered within budget and on time, given the companies’ pedigree and capacity.
Chairman and CEO of BFI Limited, said the deal aims to promptly reactivate ALSCON.
He praised CNCEC’s commitment to Nigeria’s national planning and industrial development, highlighting their shared goals to efficiently utilize natural gas, reduce carbon emissions, promote energy industry growth, enhance employment opportunities, and accelerate regional economic expansion.
Jaja commended CNCEC’s technical and capital resources expertise, citing their competence as a strategic partner in ALSCON’s rehabilitation, commissioning, and expansion.
The plant is expected to produce around one million tons of aluminum annually and generate up to 540 megawatts of electricity, Ekpo said. #Nigeria Signs $1.2bn Deal to Revamp ALSCON Gas Plant CBN Defends Naira with $39m in Forex Market
