FG Oversees Signing of $3.5bn Deal for Restart of Aluminum Smelting Plant

*Deal between BFI Group, China’s CNCEC to generate 540mw of power

Emmanuel Addeh in Abuja

The federal government yesterday superintended over the signing of an agreement between BFI Group and CNCEC for the restarting of the Aluminum Smelter Company of Nigeria (ALSCON) located in Ikot Abasi, Akwa Ibom State.
The event is coming after the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, met with top officials of CNCEC and Chairman of BFI Group, Dr. Reuben Jaja, the government approved core investor in ALSCON, on the sidelines of President Bola Tinubu’s state visit to Beijing earlier this year.

CNCEC is the biggest petrochemical engineering company in China and it is a technical partner to BFI Group, USA on the project.
ALSCON is expected to utilise Nigeria’s natural gas resources to resuscitate the plant valued at about $3.5 billion and bring back the venture which is meant to cement Nigeria’s place as a major producer of aluminum for the domestic and international market.
The plant has a capacity to produce about one million metric tonnes of aluminum per annum, the sponsors said.
Speaking at the event, Deputy Gas Minister, Ekpo stated that the event was meant to cement the partnership between the two entities, describing it as an epoch-making ceremony.

The minister noted that it was another testament to the strong commitment of  President Bola Tinubu to encourage investments in the utilisation of the nation’s abundant natural gas to drive Nigeria’s industrialisation, economic growth and development.
“It goes without saying that the synergy and cooperation between BFI Group and CNCEC also marks another significant moment in the commitment by the Chinese and Nigerian governments to work together and encourage collaboration between both nations for the continued growth and development of our peoples.
“It is our expectation, that this agreement signing ceremony will provide both BFI Group and CNCEC the platform to expedite actions necessary to restart the ALSCON plant,” Ekpo, who was represented by the Permanent Secretary in the Ministry, Nicholas Ella, stated.

According to Ekpo, when the ALSCON plant comes back on-stream, it is  expected that it will return to its pride of place as the nation’s catalyst for the development of aluminum upstream and downstream sectors.

He reiterated that it will be utilising natural gas and positioning Nigeria as a major producer of aluminum in Africa and globally; with a capacity to produce one million metric tons of aluminum per annum, and generation of about 540mw from its gas-fired power plant.

While congratulating both BFI Group and CNCEC for achieving the significant milestone,  he explained that with the pedigree and capacity of both companies, the project will be delivered within budget and on time.

In his remarks, Chairman of BFI Group, Jaja, said the meeting between Tinubu and his Chinese counterpart, Xi Xinping had started bearing fruit.

“Today’s activity is geared towards the timely and focused reactivation of ALSCON by solving one of the most thorny issues affecting that entity, which is the supply of gas.

“CNCEC has shown remarkable competence as a strategic, technical, and ethical resource partner to BFI Group by envisioning the rehabilitation, commissioning, and expansion of the ALSCON project through the gas processing project that we have now agreed to embark upon.

“CNCEC has consistently shown interest in national planning and industrial development of Nigeria and has expressed its willingness to work together with BFI Group to promote the efficient utilisation of natural gas, reduce carbon emission in our environment, foster development of the energy industry, enhance employment opportunities, and accelerate regional economic growth in Nigeria,” he stated.

According to him, it will also encourage the establishment of comprehensive strategic partnership in the fields of petrochemicals, chemical engineering, natural gas processing, fertiliser production, power plants, and infrastructure construction, which are all within the core competence of CNCEC.

Also speaking, CNCEC Chairman,  Mr Bao Guandong, acknowledged that Nigeria has abundance reserves of oil and gas, stressing that BFI remains a competent partner.

“We have set up many plants in the world. This project is a win-win situation for both parties. Today’s signing is a good start. We will do our best to select the best workers and ensure safe, quality and complete control of the project.

 “CNCEC International will dispatch its best engineers to ensure the safety, quality and schedule of this project. CNCEC International team will closely cooperate with our counterpart to fully support the financing of this project,” Guandong stated.