BFI Group, CNCEC Seal Agreement for ALSCON Gas Plant Revival
L- R: Chairman/CEO BFI Group, Dr. Reuben M. Jaja; Permanent Secretary, Ministry of Petroleum Resources, Ambassador Nicholas Agbo Ella with Chairman, China National Chemical Engineering International Corporation Ltd, Mr. Bao Guangdong during the signing ceremony for the BFIG Gas Processing Project between BFIG and CNCEC International at the NNPC Ltd Towers in Abuja on Monday.
In a major move to bolster Nigeria’s industrial capacity, BFI Group, the core investor in the Aluminum Smelter Company of Nigeria (ALSCON), has entered into a partnership with China National Chemical Engineering International Corporation Ltd. (CNCEC International) to rejuvenate the 135MMscfd Gas Processing plant at the ALSCON facility in Ikot Abasi, Akwa Ibom State. The project, with an estimated investment of US$1.2 billion, marks a crucial step in the rehabilitation and expansion of ALSCON.
The agreement was signed on Monday at the Boardroom of the Minister of State Petroleum Resources (Gas) at the NNPC Towers in Abuja, a ceremony that signals the recommissioning of the long-dormant plant, which has been inactive for almost 30 years. The deal is poised to return ALSCON to its position as a key player in both domestic and international aluminum markets, with a target annual production capacity of 300,000 metric tonnes.
In his remarks, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the agreement as “epoch-making,” emphasizing it as a testament to President Bola Tinubu’s commitment to fostering investments in natural gas utilization. He noted that the deal would play a vital role in Nigeria’s industrialization, economic growth, and sustainable development.
Ambassador Nicholas Agbo Ella, Permanent Secretary of the Ministry of Petroleum Resources, who represented the Minister, commended the collaboration between BFI Group and CNCEC International, underscoring the strong partnership between the Nigerian and Chinese governments aimed at driving mutual growth.
“The restart of the Gas Processing Facility, as the first phase of ALSCON’s rehabilitation, will help energize Nigeria’s aluminum sector, both upstream and downstream, placing the country among Africa’s and the world’s top producers,” Ekpo said, expressing confidence that the project would be delivered on schedule and within budget.
Dr. Reuben Jaja, Chairman and CEO of BFI Limited, explained that the deal would facilitate the rapid reactivation of ALSCON. He praised CNCEC’s role in Nigeria’s industrial development, noting their shared goals of enhancing natural gas usage, reducing carbon emissions, and fostering economic expansion, especially in the energy sector.
Jaja further commended CNCEC for their technical expertise and capital resources, which he described as essential for ALSCON’s successful rehabilitation and expansion.
The deal sets the stage for ALSCON’s return to full operations, which is expected to significantly impact Nigeria’s aluminum industry and create numerous employment opportunities, boosting the regional economy. LAUTECH Alumni Announces Details for 2024 Awards Event
