Nigeria Partners With China To Revive Akwa Ibom’s Gas Plant With $1.2 Billion Aluminum Deal

In a bid to boost aluminum production in Nigeria, the Federal Government through the Ministry of Petroleum has announced a partnership with two firms to revive the dormant 135MMscfd Gas Processing Plant, in Ikot Abasi, Akwa Ibom State.

The development was made known by the Minister of State for Petroleum (Gas), Ekperikpe Ekpo, via his official X handle on Tuesday, November 12.

The minister revealed that the investment deal, valued at $1.2 billion would place the country’s industrial sector on the global map as a leading aluminum producer.

Ekpo praised the firms involved in the agreement including BFI and CNCEC International.

He noted that with the revived gas plant the Aluminium Smelter Company of Nigeria (ALSCON) will be able to meet an annual capacity of 300,000 metric tonnes.

Ekpo wrote, “It brings me great satisfaction to announce a pivotal agreement between BFI Group and CNCEC International to revive the long-dormant 135MMscfd Gas Processing Plant at ALSCON in Ikot Abasi, Akwa Ibom.

“This $1.2 billion investment marks a historic step forward for Nigeria’s industrial sector, placing 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.

Minister Ekpo lauded the commitment of President Bola Tinubu to attract investment to the country’s gas sector.

He acknowledged the government’s fruitful relationship with China saying, “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.”

The Minister of State for Petroleum added that the deal would position the Nigeria as a significant player in Africa and the world using natural gas.

“Through this agreement, I am confident that 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.

Congratulating the firms, the minister concluded, “I congratulate both BFI Group and CNCEC International on reaching this milestone and look forward to seeing this project delivered on time and within budget, supported by the companies’ expertise and dedication.”