The Nigerian Ministry of Petroleum Resources has signed a $1.2 billion agreement with China’s CNCEC to bring back the Aluminum Smelter Company of Nigeria (ALSCON) gas processing plant, which has been not working since 2013. This was announced by Minister Ekperikpe Ekpo.
The deal, facilitated by Ekpo, is meant to start up ALSCON’s gas processing plant in Akwa Ibom, which can handle 135 million standard cubic feet of gas each day. The plant stopped working because of legal problems and money issues.
According to Ekpo, the contract was signed with BFI Group, the core investor in ALSCON. CNCEC will fix the plant so that Nigeria can make 300,000 tons of aluminium every year.
“Bringing the plant back will make Nigeria a big aluminium maker in Africa and around the world,” Ekpo said. “This project will help a lot in our industries and energy areas.”
The ALSCON plant, established in 1997, ceased operation in 2000. In 2007, United Company RUSAL bought 85% of the shares, but they had to stop operations in 2013 because the gas supply was not reliable.
The $1.2 billion investment will cover:
- Restarting unused equipment
- Buying new power-generating machines
- Increasing production ability
Projected outcomes include:
- Producing 1 million tons of aluminium each year
- Generating 540 megawatts of electricity
- Major economic growth
This development follows after Vice President Kashim Shettima talked with UC RUSAL during the Russia-Africa Summit in July 2023.
