Nigeria Secures $1.2 Billion Deal to Overhaul Gas Plant Supporting Aluminum Smelter

The partnership with CNCEC not only aims to boost aluminum production but also aligns with Nigeria's broader industrialization and energy diversification goals.

SEATTLE (Scrap Monster): Nigeria has entered into a $1.2 billion agreement with China’s state-owned China National Chemical Engineering Corporation (CNCEC) to overhaul a vital gas processing facility supporting the country's aluminum production sector, as announced by the Petroleum Ministry, according to several media reports. This deal, inked between CNCEC and BFI Group—the primary investor in the Aluminum Smelter Company of Nigeria (ALSCON)—marks a pivotal move toward reviving the smelter, which has remained inactive for years due to protracted legal battles and financial difficulties.

The Petroleum Ministry revealed on Monday that the agreement includes CNCEC’s role in restoring a 135 million standard cubic feet per day (MMscfd) gas processing plant at the currently inactive smelter. This plant, when operational, is expected to generate around 300,000 tons of aluminum per year. The project aims to address energy needs and significantly boost the aluminum production sector, allowing Nigeria to establish itself as a prominent aluminum producer both in Africa and on the global stage.

Epkerikpe Ekpo, Nigeria’s Minister of State for Gas, emphasized that the restoration of this gas plant is key to creating a comprehensive aluminum production chain within the country. By developing multiple stages of production locally, Nigeria could become an essential player in the aluminum industry, enhancing its competitive position in international markets. According to Ekpo, the revamped smelter could produce approximately one million tons of aluminum annually and has the potential to generate up to 540 megawatts of electricity.

The partnership with CNCEC not only aims to boost aluminum production but also aligns with Nigeria's broader industrialization and energy diversification goals. By resuming operations at ALSCON, Nigeria aims to strengthen its infrastructure and develop local industries, contributing to long-term economic growth and job creation. This initiative reflects Nigeria’s ambition to revitalize its manufacturing and industrial sectors, a move that could position the nation as a leading aluminum producer and exporter.

With the smelter upgrade, the Petroleum Ministry envisions Nigeria advancing in energy self-sufficiency and boosting exports in the metal sector. As aluminum demand rises globally, this project could help Nigeria tap into expanding markets and establish a significant presence within the industry. The overhaul of the gas processing plant, essential for powering the aluminum production process, is expected to revitalize ALSCON and attract further investment in Nigeria's resource processing capabilities.

This deal underscores Nigeria's commitment to utilizing its natural gas resources to fuel industrial growth. By bringing the gas processing plant and ALSCON back to life, the country aims to unlock economic benefits, foster self-reliance, and meet global demand for aluminum while promoting sustainable energy use in its industrial landscape.

Courtesy: www.chemanalyst.com

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