Nigeria has entered a $1.2 billion agreement with China’s state-owned CNCEC to revitalize a key gas processing facility supporting the nation’s aluminum production. This development was shared by Petroleum Resources Minister (gas) Ekperikpe Ekpo on Monday.
The contract involves BFI Group, the primary investor in the Aluminium Smelter Company of Nigeria (ALSCON), and will restore operations at the dormant smelter in Akwa Ibom, halted for years due to financial and legal obstacles. CNCEC will rejuvenate the plant’s 135-million standard cubic feet per day gas processing capacity, essential to ALSCON’s goal of producing 300,000 tons of aluminum annually.
Ekpo highlighted the project’s potential to position Nigeria as a leading aluminum producer in Africa and globally. The plant’s full operations aim to produce up to one million tons of aluminum each year and contribute 540 megawatts to Nigeria’s power grid, which will support the country’s industrial and energy sectors.
Background and Financial Needs
Earlier in 2023, ALSCON’s Managing Director, Dmitriy Zaviyalov, mentioned a $500 million requirement to revive idle equipment and procure power solutions for the plant’s energy needs. During discussions with President Bola Tinubu, ALSCON Chairman Alexey Arnautov underscored the urgency of this funding to enhance ALSCON’s operations and contribute to Nigeria’s industrial progress.
What to Know
ALSCON, established in 1997, stopped production in 2000 and was later acquired by Russian company UC RUSAL in 2007, with the Nigerian government retaining a minority share. RUSAL’s efforts upgraded ALSCON’s production capacity to 193,000 tons of aluminum per year, yet operations were suspended in 2013 due to an unreliable gas supply.
Despite several government efforts, the plant’s reactivation had faced delays. Recently, Vice President Kashim Shettima engaged UC RUSAL and other stakeholders at the Russia-Africa Summit to renew efforts towards ALSCON’s revival
