Nigeria has signed a $1.2bn (R21.67bn) contract with Chinese state-owned engineering firm CNCEC to revamp a gas processing plant crucial for the country's aluminium production, its petroleum ministry said.
The contract signed between CNCEC and BFI Group — the core investor in the Aluminium Smelter Company of Nigeria — is the first step towards reviving the dormant smelter which has been plagued by years of inactivity due to legal disputes and financial issues.
The ministry said late on Monday the deal would see CNCEC resuscitate the 135-million standard cubic feet per day gas processing plant at the dormant smelter, which can produce about 300,000 tonnes of aluminium annually.
Minister of state for gas Epkerikpe Ekpo said the plant's restart would allow Nigeria to develop multiple stages of the aluminium production process and position it “as a major producer of aluminium in Africa and globally”.
The plant is expected to produce about 1-million tonness of aluminium annually and generate up to 540MW of electricity, Ekpo said.
Reuters
Nigeria signs $1.2bn deal to revamp gas plant for aluminium smelter
Image: 123RF/lnpdm
Nigeria has signed a $1.2bn (R21.67bn) contract with Chinese state-owned engineering firm CNCEC to revamp a gas processing plant crucial for the country's aluminium production, its petroleum ministry said.
The contract signed between CNCEC and BFI Group — the core investor in the Aluminium Smelter Company of Nigeria — is the first step towards reviving the dormant smelter which has been plagued by years of inactivity due to legal disputes and financial issues.
The ministry said late on Monday the deal would see CNCEC resuscitate the 135-million standard cubic feet per day gas processing plant at the dormant smelter, which can produce about 300,000 tonnes of aluminium annually.
Minister of state for gas Epkerikpe Ekpo said the plant's restart would allow Nigeria to develop multiple stages of the aluminium production process and position it “as a major producer of aluminium in Africa and globally”.
The plant is expected to produce about 1-million tonness of aluminium annually and generate up to 540MW of electricity, Ekpo said.
Reuters
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