Nigeria: $1.2 billion deal to rehabilitate gas processing plant
A strategic partnership with China National Chemical Engineering Company (CNCEC)
Nigeria recently signed a $1.2 billion deal with China National Chemical Engineering Company (CNCEC) to rehabilitate a gas processing plant for the Aluminum Smelter Company of Nigeria (ALSCON) .
This project will secure a supply of 135 million standard cubic feet per day of natural gas , essential for generating 540 megawatts of electricity for the needs of ALSCON’s smelters. These facilities have been idle for more than ten years due to energy shortages, resulting in significant economic losses for this company, 85% of which is owned by Russian investors.
A lever for the monetization of natural gas
A strategic resource
With the largest proven reserves of natural gas in Africa , Nigeria ranks third in terms of production on the continent, behind Algeria and Egypt. This project is part of a government strategy aimed at further exploiting this potential to support industrial development and reduce economic dependence on oil exploitation.
Support for economic growth
The move comes in line with Nigeria’s growth forecasts, estimated by the African Development Bank (AfDB) at 3.2% in 2024 and 3.4% in 2025. Through projects like ALSCON, the government aims to use its vast energy resources to support its economic development.
Complementary projects for sustainable industrialization
The partnership with CNCEC is not an isolated case. On November 13 , NNPC Gas Marketing Limited (NGML) signed a 20-year contract to supply 100 million standard cubic feet of gas per day to the Dangote Group’s refining and petrochemical complex. Such initiatives reflect a growing desire to accelerate industrial transformation and improve the country’s economic competitiveness.
Conclusion: A boost for Nigerian industry and energy
The rehabilitation of the gas processing plant for ALSCON is a key milestone in Nigeria’s gas monetization strategy. This project, in collaboration with CNCEC, illustrates a positive dynamic aimed at revitalizing critical industrial sectors and supporting sustainable growth.
In a context of economic diversification, these efforts strengthen the role of natural gas as a lever for industrial transformation, positioning Nigeria as a key player in energy in Africa.
