ALSCON29 Nov 2025 08:54
Morning All
Aluminium Smelter Company of Nigeria (ALSCON) is a smelting complex located in Ikot-Abasi, as far as I can determine it conveniently sits less thank 1km from as Ibom Power Plant which we currently supply, appears that Accugas has a historic supply agreement with ALSCON and presumably, it is connected to the pipeline network.
The plant has not been operational for some time however seems it has been maintained and is in a "good" condition which includes the turbines.
6 gas turbines installed with a name plate capacity of 540 MW (90 MW per turbine). our largest customer is Calabar power station which has an installed capacity of 560 MW....
Looks like FG are pushing as hard as they can ( including circa $400 mill commitment) to get the plant back operational.
1. ALSCON has the ability to be able to deliver excess power to the grid via a local substation which is being refurbished (has its own power plant)
2. Nigeria imports its aluminium and spends FX doing so even though it possesses most of the base materials for domestic production.
3. Complex would create significant employment (estimates of 15,000)
4. The plant could produce enough to export ang generate FX revenues.
Hurdles remain
1. Ownership dispute, conflicting court decisions, FG currently negotiating with a view to settling the dispute
2. Local river needs to be dredged to allow for large scale barges to access waterway.
3. Stable, consistent Gas supply - cough cough
4. Any required refurbishment ( $1.2 billion gas‑plant rehabilitation deal signed between BFI Group (lead investor in ALSCON) and China National Chemical Engineering International Corporation (CNCEC)
Found a quote from a Nigerian minister in Oct 2025 that they wanted to have the plant fired up within 90 days. (probably optimistic)
Others are better than me to give a guess on the potential financial implications of a full (what will need to be long term) offtake agreement would be, would be interested to hear?
I believe that this is a large part of the reason we have completed the compression project and are drilling for more gas, maybe also played a part in the the Stubb Creek deal (added additional gas reserves)
The plant producing at full steam clearly has a few hurdles to jump however this seems to be of national importance to the FG and a gas supply offtake agreement is one of the big hurdles.
Hopefully helps lift a bit of the doom and gloom, we are all betting here, I bet on the balance of probability that Accugas are and have been in commercial negotiations for some time on an offtake agreement and that they are in a fairly strong position, as far as I can see, there is no viable alternatives. Feel free to tell me I'm talking nonsense, is the reason I have topped up more than I should have in the 5's.
To confirm, all of the above are my thoughts only, all of the information above has been obtained from publicly available sources. Please DYOR
Would b
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