Nigeria Signs $1.2 Billion Deal with China’s CNCEC to Revamp Key Gas Processing Plant

Nigeria has signed a $1.2 billion contract with the Chinese state-owned engineering firm China National Chemical Engineering Corporation (CNCEC) to overhaul a gas processing plant that is crucial for the country's aluminium production, according to the Petroleum Ministry. The agreement marks the initial move towards reviving the long-dormant Aluminum Smelter Company of Nigeria (ALSCON), which has faced prolonged inactivity due to financial challenges and legal disputes.

The contract was signed between CNCEC and BFI Group, the core investor in ALSCON. It aims to resuscitate the 135 million standard cubic feet per day gas processing plant, which is vital to the smelter that has an annual aluminium production capacity of around 300,000 tonnes. The revamp of this facility is seen as a significant step forward for Nigeria's aluminium sector, which has suffered from setbacks for many years.

Epkerikpe Ekpo, Nigeria's Minister of State for Gas, stated that restarting the plant would enable Nigeria to develop multiple stages of the aluminium production process, thereby positioning the country as a major producer of aluminium both in Africa and globally. Ekpo also noted that the plant is expected to ultimately produce around one million tonnes of aluminium annually and generate up to 540 megawatts of electricity, further solidifying Nigeria's role in the international aluminium market.