The BFI Group, the core investor in Aluminum Smelter Company of Nigeria (ALSCON) and Chinese firm, China National Chemical Engineering Corporation (CNCEC) have signed a significant agreement to resuscitate the 135MMscfd Gas Processing plant in ALSCON Plant Ikot Abasi, Akwa Ibom State, with a total estimate investment of about US$1.2 billion.
The landmark pact, signed in the boardroom of the minister of State Petroleum Resources (Gas), in Abuja on Monday marks a crucial milestone in ALSCON’s rehabilitation, recommissioning, and expansion.
Dormant for nearly three decades, ALSCON is poised to regain its position as a major aluminium producer for domestic and international markets, with a capacity to produce three hundred thousand (300,000) metric tonnes of aluminium per annum.
The agreement between BFI Group and CNCEC, was signed yesterday in Abuja, which was presided over by the minister of state, Petroleum Resources, (Gas), Ekperikpe Ekpo, aims to restart ALSCON, which is expected to produce one million metric tons of aluminium annually and generate 540 MW of power.
In his remarks, Ekpo charged both companies to use their pedigrees and capacities to facilitate the speedy completion and delivery of the project, within budget.
Represented by the permanent secretary of the ministry, Nicholas Agbo Ella, the minister, said this initiative aligns with President Bola Ahmed Tinubu’s commitment to harnessing Nigeria’s natural gas for industrial growth, enhancing economic development, and fostering bilateral cooperation between Nigeria and China
ALSCON is a project of national significance, which aims to utilise natural gas resources to resuscitate the Plant valued at about US$3.5 billion and bring back the venture thereby solidifying Nigeria’s position as a major producer of aluminium for the domestic and international market, with a capacity to produce about one million metric tonnes of aluminium per annum.
According to him, “the synergy and cooperation between BFi Group and CNCEC marks another significant moment in the commitment by the Chinese and Nigerian governments to work together and encourage collaboration between both nations for the continued growth and development of our peoples.
Ekpo said the agreement signing ceremony will provide both BFI Group and CNCEC the platform to expedite actions necessary to restart the ALSCON Plant, with expectations that when it comes back onstream, the plant will return to its pride of place as the nation’s catalyst for the development of aluminium upstream and downstream sectors, utilising natural gas and positioning Nigeria as a major producer of aluminium in Africa and globally.
Also speaking, BFI Group chairman, Dr Reuben Jaja, recalled that on September 2nd, 2024, President Tinubu met with his Chinese counterpart, President Xi Jinping, in Beijing, China, at the Africa Forum, where they reached several beneficial bilateral negotiations.
According to him, the success of that meeting and negotiations have started yielding its expected dividends Nigeria.
Jaja said the agreement is geared towards the timely and focused reactivation of ALSCON and by solving one of the most thorny issues affecting that entity, which is the supply of gas.
“The synergy will encourage the establishment of comprehensive strategic partnership in the fields of petrochemical, chemical engineering, natural gas processing, fertiliser production, power plants, and infrastructure construction, which are all within the core competence of CNCEC.”
On his part, CNCEC chairman, Bao Guandong, gave the assurance that CNCEC International team will closely cooperate with counterpart to fully support the financing of this project.
He said the company has 70 years of history of chemical and petrochemical technology.
“We have set up more than 70,000 plants in the world. This project is a win-win situation for both parties. Today’s signing is a good start.
“We will do our best to select the best workers and ensure the safety, quality and complete control of the project. And also, today’s signing ceremony is a brand new start of this project, and CNCEC International will dispatch its best engineers to ensure the safety, quality and schedule of this project.
SOURCE: LEADERSHIP
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