Nigeria Signs $1.2 Billion Deal with China's CNCEC to Revamp Key Gas Processing Plant

Written on 12/11/2024
Business Day

Nigeria has entered into a $1.2 billion agreement with Chinese state-owned engineering firm CNCEC to rehabilitate a vital gas processing plant, crucial for the country's aluminum industry, as announced by the Petroleum Ministry.

The contract, signed with BFI Group—the main investor in the Aluminum Smelter Company of Nigeria (ALSCON)—marks a significant step in reviving the long-dormant smelter located in Akwa Ibom.

The aluminum plant had faced years of inactivity due to prolonged legal battles and financial difficulties. The partnership aims to restore operations, boost local aluminum production, and drive economic growth in the region.



The Petroleum Ministry said late on Monday that the deal would see CNCEC resuscitate the 135 million standard cubic feet per day gas processing plant at the dormant smelter, which can produce around 300,000 tons of aluminum annually.

Minister of State for Gas Epkerikpe Ekpo said the plant’s restart would allow Nigeria to develop multiple stages of the aluminum production process and position it “as a major producer of aluminum in Africa and globally”.

The plant is expected to produce around one million tons of aluminum annually and generate up to 540 megawatts of electricity, Ekpo said.

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