Ekperikpe Ekpo, the minister of state for petroleum resources (gas), says Nigeria has signed a $1.2 billion contract with China National Chemical Engineering (CNCEC) to revamp a gas processing plant in Akwa Ibom.

Ekpo, announcing the deal on X on Tuesday, said the gas plant is crucial for the production of aluminium in the country.

He said the contract, signed between CNCEC and BFI Group — the core investor in the Aluminium Smelter Company of Nigeria (ALSCON) — is the first step towards reviving the dormant firm.

The minister also said the deal would see CNCEC resuscitating the 135 million standard cubic feet per day gas processing plant at the dormant smelter, which can produce around 300,000 tons of aluminium annually.

“It brings me great satisfaction to announce a pivotal agreement between BFI Group and CNCEC International to revive the long-dormant 135MMscfd Gas Processing Plant at ALSCON in Ikot Abasi, Akwa Ibom state,” Ekpo said.

“This $1.2 billion investment marks a historic step forward for Nigeria’s industrial sector, placing ALSCON back on the path to becoming a leading aluminium producer for both domestic and international markets, with an annual capacity of 300,000 metric tonnes.

“This ‘epoch-making’ partnership reflects the steadfast commitment of President Bola Tinubu to foster investments in natural gas utilization, supporting Nigeria’s industrialization, economic growth, and development.

“I commend the collaborative synergy between BFI Group and CNCEC International, as well as the fruitful relationship between the governments of Nigeria and China that is driving this ambitious vision forward.”

Ekpo expressed optimism that the agreement would expedite actions necessary to restart the gas processing facility, which will be the first phase to reignite the ALSCON plant.

“The reactivation of ALSCON promises to reshape Nigeria’s aluminium sector, using natural gas to position the country as a significant player in Africa and on the global stage,” he added.

The minister also congratulated the BFI Group and CNCEC International on achieving the significant milestone.

He expressed belief that the project would be delivered on time and within budget through the companies’ expertise and dedication.

In September, the federal government announced plans to revive the ALSCON, stressing that when fully operational, the company would contribute to the nation’s economy.