PRESS RELELASE: BFI Group, CNCEC International Seal Agreement for Resuscitation of ALSCON'S 135MMscfd Gas Processing Plant
In a significant development for Nigeria's industrial sector, BFI Group, the core investor in Aluminum Smelter Company of Nigeria (ALSCON), has signed an agreement with China National Chemical Engineering International Corporation Ltd. (CNCEC International) 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 at the Boardroom of the Minister of State Petroleum Resources (Gas) at the NNPC Towers 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 aluminum producer for domestic and international markets, with a capacity to produce three hundred thousand (300,000) metric tonnes of aluminum per annum.
Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in a speech described the deal as "epoch-making" and a testament to President Bola Tinubu's commitment to encouraging investments in natural gas utilization for Nigeria's industrialization, economic growth, and development.
Represented by Permanent Secretary, Ministry of Petroleum Resources, Ambassador Nicholas Agbo Ella, Ekpo lauded the synergy between BFI Group and CNCEC International, highlighting the Chinese and Nigerian governments' collaboration for mutual growth and development.
Ekpo expressed optimism that the agreement would expedite actions necessary to restart the Gas Processing Facility, which will be the first phase to restart the ALSCON Plant. Upon resumption, the plant is expected to catalyze Nigeria's aluminum upstream and downstream sectors, utilizing natural gas and positioning the country as a major producer in Africa and globally.
The Gas Minister congratulated BFI Group and CNCEC International on achieving a significant milestone, trusting that the project will be delivered within budget and on time, given the companies' pedigree and capacity.
Chairman and CEO of BFI Limited, Dr. Reuben Jaja, said the deal aims to promptly reactivate ALSCON. He praised CNCEC's commitment to Nigeria's national planning and industrial development, highlighting their shared goals to efficiently utilize natural gas, reduce carbon emissions, promote energy industry growth, enhance employment opportunities, and accelerate regional economic expansion.
Jaja commended CNCEC's technical and capital resources expertise, citing their competence as a strategic partner in ALSCON's rehabilitation, commissioning, and expansion.
Signed,
Louis Ibah
Spokesman for the Minister of State Petroleum Resources (Gas).
November 11, 2024.
