Ethiopia, Djibouti, China Announce Mega Gas Project

A mega gas project, comprising a natural gas pipeline, which will run from Ethiopia to Djibouti, a liquefaction plant and an export terminal, has been inaugurated in Damerjog, Djibouti.

The project, which will be funded by the Chinese firm POLY-GCL Petroleum Group Holdings Ltd, will cost approximately four billion dollars. Construction work is expected to start shortly, with completion expected in three years.

A foundation stone-laying ceremony was held in the small town, with construction to begin once legal agreements are finalized. Three agreements were signed between three parties over the period October 2014 to September, 2015.

The new 700km pipeline will transport up to 12 billion cubic metres of natural gas from Ethiopia to Djibouti where it will be exported to China. The liquefaction plant will have the capacity to produce u to 10 million tonnes of liquefied natural gas per year after completion of the project.

The mega gas project will become the second major joint energy infrastructure project to be agreed upon between Djibouti and Ethiopia.

In September 2015, the two had signed a 1.5 billion dollar agreement to construct a 550km refined petroleum products pipeline linking Djibouti’s ports to the Awash terminal in central Ethiopia. Black Rhino Group and Mining Oil & Gas Service with construct the pipeline with completion scheduled for 2018.


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