The Federal Government of Nigeria has secured a $1.2 billion agreement with China National Chemical Engineering Corporation, CNCEC, a Chinese state-owned engineering firm, to revive a critical gas processing facility that supports the country’s aluminium production.
This partnership, announced by Minister of Petroleum Resources (Gas) Ekperikpe Ekpo on Monday, November 12, is aimed at revitalizing the Aluminum Smelter Company of Nigeria, ALSCON, in Akwa Ibom State, which has been dormant due to prolonged legal battles and financial constraints.
The contract involves CNCEC in partnership with BFI Group, the primary investor in ALSCON, and is expected to restore the 135 million standard cubic feet per day gas processing plant at ALSCON.
Once operational, this plant will enable an annual aluminium production capacity of 300,000 tons, advancing Nigeria’s position as a key aluminium producer in Africa and globally.
The facility is also projected to eventually produce one million tons of aluminium annually and generate up to 540 megawatts of power, providing a substantial boost to Nigeria’s energy and industrial sectors.
Dmitriy Zaviyalov, Managing Director of ALSCON, highlighted that reviving the plant would require an additional $500 million for equipment upgrades and power generation solutions.
During a recent meeting with President Bola Tinubu at the State House in Abuja, ALSCON Chairman Alexey Arnautov underscored the need for timely investment, noting that the allocation of $500 million could greatly enhance the facility’s operations and contribute significantly to Nigeria’s industrial sector.
The statement, issued by Ajuri Ngelale, former Special Adviser to the President on Media and Publicity, emphasized that ALSCON’s revival aligns with Nigeria’s broader industrialization goals.
Originally established in 1997, ALSCON ceased operations in 2000 but was acquired in 2007 by United Company RUSAL, a Russian aluminum giant that took an 85 percent stake, with the remaining shares retained by the Nigerian government.
Despite RUSAL’s initial modernization efforts, which expanded ALSCON’s capacity to 193,000 tonnes of aluminium annually, gas supply issues forced the plant to halt production in 2013.
The Nigerian government has pursued various initiatives to restart ALSCON, including Vice President Kashim Shettima’s engagement with RUSAL and other stakeholders at the Russia-Africa Summit in July 2023.
This recent agreement with CNCEC represents a significant milestone in addressing longstanding operational challenges and fulfilling Nigeria’s ambitions to strengthen its industrial base.
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