Nigeria signs $1.2 Billion deal to upgrade gas plant for aluminum smelter

The Nigerian Petroleum Ministry announced that the country has signed a contract worth $1.2 billion with CNCEC, a state-owned Chinese engineering firm. This project is crucial to the production of aluminium in Nigeria.

The agreement between CNCEC, the main investor in Aluminum Smelter Company of Nigeria (ASCN), and BFI Group is the first step in reviving this dormant facility that has lain idle for years due to financial and legal issues.

The Petroleum Ministry announced late Monday that CNCEC would resurrect the 135 million standard cubic feet per day gas-processing plant at the dormant aluminum smelter. This plant can produce approximately 300,000 tonnes of aluminium each year.

The Minister of State for Gas Epkerikpe Ekpo stated that the restart of the plant would allow Nigeria to develop several stages of the aluminum production process, and position the country "as a leading producer of aluminium both in Africa and worldwide".

Ekpo stated that the plant will produce up to one million tons aluminium per year and generate 540 megawatts. (Reporting and writing by Camillus Eboh, Elisha Gbogbo, Editing by Jan Harvey).

(source: Reuters)