Nigeria Signs $1.2 Billion Deal to Revive Aluminium Smelter Gas Plant

Nigeria has entered into a significant $1.2 billion agreement with Chinese state-owned engineering firm, China National Chemical Engineering Corporation (CNCEC), to revamp a critical gas processing plant integral to the country’s aluminium production.

The deal, signed between CNCEC and BFI Group, the main investor in the Aluminium Smelter Company of Nigeria (ALSCON), signals the first major step towards reviving the long-dormant smelter that has faced years of operational challenges, including legal disputes and financial setbacks.

The Petroleum Ministry confirmed the deal on Monday, noting that CNCEC will restore the 135 million standard cubic feet per day gas processing plant, which is vital to the smelter’s operation.

The plant, once fully operational, is expected to produce approximately 300,000 tons of aluminium annually, significantly contributing to Nigeria’s manufacturing sector.

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Minister of State for Gas, Epkerikpe Ekpo, highlighted the transformative potential of the project, stating that the plant’s restart will not only boost local aluminium production but also position Nigeria as a key player in the global aluminium market.

“This is a crucial development for the country’s aluminium industry, and it will enable Nigeria to progress through multiple stages of aluminium production,” Ekpo remarked.

In addition to aluminium production, the revamped plant is expected to generate up to 540 megawatts of electricity, further contributing to Nigeria’s energy needs. When fully operational, the smelter is projected to produce up to one million tons of aluminium annually.