The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has hailed the signing of a partnership agreement between BFI Group, the core investor in the Aluminium Smelter Company of Nigeria (ALSCON), and China National Chemical Engineering Corporation (CNCEC) as a landmark achievement.
The agreement, valued at approximately $3.5 billion, was officially signed on November 11, 2024, in Abuja, setting the stage for the revival of the ALSCON plant.
Represented by the Permanent Secretary of the Ministry of Petroleum Resources (MPR), Amb. Nicholas Agbo Ella, the Minister expressed confidence that the resumption of operations at ALSCON would solidify Nigeria’s position as a major producer of aluminium in Africa and globally.
The plant, with a production capacity of one million metric tons of aluminium per year and a gas-fired power plant generating 540 MW, is expected to play a crucial role in the upstream and downstream aluminium sectors.
Ekpo emphasized that the deal is a reflection of President Bola Ahmed Tinubu’s commitment to boosting industrialization and economic growth by leveraging Nigeria’s abundant natural gas resources.
He reiterated the importance of such investments in driving the country’s development and reducing reliance on imported aluminium.
Dr. Reuben Jaja, Chairman of BFI Group, noted that CNCEC’s involvement would further Nigeria’s industrial development goals.
He highlighted the company’s focus on promoting efficient natural gas utilization, reducing carbon emissions, and contributing to the growth of the energy sector while also creating jobs and fostering regional economic development.
Mr. Bao Guangdon, Chairman of CNCEC, praised Nigeria’s vast natural resources, particularly in the oil and gas sector, and reiterated the company’s commitment to deploying its expertise, especially in financing, to ensure the success of the partnership and achieve high-quality results.
The signing ceremony, which also included the Permanent Secretary and several directors from the Ministry, as well as officials from BFI Group and CNCEC, marked a significant milestone in the revival of ALSCON and the growth of Nigeria’s aluminium industry.
Meanwhile, NNPC Gas Marketing Limited and A4E Energy have announced a significant partnership to construct a natural gas distribution facility in Ajaokuta, Nigeria.
The facility, which will have a capacity of 100 million standard cubic feet per day, is set to play a crucial role in enhancing the supply of natural gas to various domestic operations, including liquefied natural gas activities, compressed natural gas compression units, and other gas-dependent enterprises in the region.
The arrangement is expected to enhance the accessibility of gas for domestic consumers while promoting the use of cleaner energy sources.1
