A Nigerian firm (BFIG) and Chinese National Chemical Engineering Company (CNCEC) have signed a deal worth $1.2 billion for the resuscitation and restoration of gas processing plant in Ikot Abasi, Akwa Ibom State, meant to serve Aluminum Smelter Company of Nigeria (ALSCON).
The Smelter has been crippled by ownership tussle between BFIG and a Russian firm, RUSAL, which emerged as the preferred bidder when the plant was privatised by Olusegun Obasanjo-led Federal Government.
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By the time the plant suspended production, it was grappling with issues of inadequate gas supply to the plant, irregular power supply, and insecurity challenges.
Announcing the deal on his X account, Ekperikpe Ekpo, minister of Petroleum Resources (Gas), said the agreement would “revive the long-dormant 135MMscfd Gas Processing Plant at ALSCON in Ikot Abasi, Akwa Ibom State.”
Describing the $1.2 billion investment as a “historic step forward for Nigeria’s industrial sector,” Ekpo said it would place ALSCON back on the path to becoming a leading aluminum producer for both domestic and international markets, with an annual capacity of 300,000 metric tonnes.
“This ‘epoch-making’ partnership reflects the steadfast commitment of President Bola Tinubu to foster investments in natural gas utilization, supporting Nigeria’s industrialization, economic growth, and development.
“I commend the collaborative synergy between BFI Group and CNCEC International, as well as the fruitful relationship between the governments of Nigeria and China that is driving this ambitious vision forward,” he said.
The minister expressed confidence that through the agreement, “we will soon see the necessary actions taken to restart the Gas Processing Facility, marking a crucial first phase to reignite ALSCON’s full potential.
“The reactivation of ALSCON promises to reshape Nigeria’s aluminum sector, using natural gas to position the country as a significant player in Africa and on the global stage.”
He lauded both BFI Group and CNCEC International on reaching this milestone, as everybody was looking forward to seeing the project delivered on time and within budget, supported by the companies’ expertise and dedication.
It was gathered that the ownership tussle was recently resolved by the Supreme Court in favour of the BFIG Group.