- Nigeria has signed a $1.2 billion deal with Chinese firm CNCEC to revive the dormant Aluminium Smelter Company of Nigeria (ALSCON) and its gas processing plant in Akwa Ibom.
- The revived plant is expected to produce one million tons of aluminium annually and generate up to 540 megawatts of electricity, boosting Nigeria’s industrial and energy sectors.
Nigeria has signed a $1.2 billion agreement with the China National Chemical Engineering Corporation (CNCEC) to revive an essential gas processing plant at the Aluminum Smelter Company of Nigeria (ALSCON) to boost the country’s aluminium production.
The contract, revealed by Minister of Petroleum Resources (Gas) Epkerikpe Ekpo, was signed with BFI Group, the core investor in ALSCON, and marks a significant step toward restarting the plant in Akwa Ibom, which has been inactive for years due to legal disputes and financial challenges.
The deal will involve CNCEC restoring the 135 million standard cubic feet per day gas processing plant at ALSCON, a facility producing 300,000 tons of aluminium annually. Once operational, the plant is expected to ramp up production to one million tons of aluminium annually and generate up to 540 megawatts of electricity, significantly contributing to Nigeria’s energy and industrial sectors.
ALSCON, established in 1997, ceased operations in 2000 due to economic challenges. In 2007, Russian company UC RUSAL acquired an 85% stake in the plant and modernised its infrastructure, increasing the production capacity to 193,000 tonnes annually. However, production was halted in 2013 due to an unreliable gas supply, and efforts to revive the plant have been slow.
Earlier this year, ALSCON’s Managing Director Dmitriy Zaviyalov indicated that reviving the plant would require a $500 million investment to restore equipment and address energy challenges. In July 2023, Nigeria’s Vice President Kashim Shettima engaged UC RUSAL and other stakeholders to discuss plans for reactivating the facility. The new agreement with CNCEC is a pivotal move toward revitalising ALSCON and positioning Nigeria as a leading aluminium producer in Africa.