Ethiopia signed a deal with Djibouti for the construction of a gas pipeline from the Ogaden Basin in eastern Ethiopia to the port of Djibouti.
The 767km long pipeline will give Ethiopia access to an export terminal on the Red Sea. About 700 km of the pipeline stretches from Calub Hilala fields to the Ethiopia-Djibouti, while the remaining 67 Km cuts through Djibouti to reach the port.
Samuel Hurcato (PhD), Ethiopia’s Minister of Mines and Petroleum, said the agreement, which he said is signed after extensive negotiations, ensures the mutual benefit of both countries. Yonis Ali Guedi, Djibouti’s Energy Minister, on his part, remarked, “It is the most expensive project ever built in the Horn of Africa region.” However, the total cost of the project has not yet been disclosed. The deal was signed in Addis Ababa.
Poly-GCL Petroleum Group Holdings Limited, a Chinese company, will lead the project’s construction. Poly-GCL, a subsidiary of Golden Concord Group Limited, takes on a diverse range of activities from green energy generation to downstream activities including transport, storage and terminal management. This is the company that made a sizeable gas discovery last March in the Ogaden basin. The discovered gas reserve is estimated to be between six and eight trillion cubic feet. The field went into production in July 2018.
The pipeline announcement comes two weeks after President of the African Petroleum Producers Organization, Dr Emmanuel Ibe Kachikwu, announced that $2 billion is needed to fund critical infrastructure in Africa’s energy sector, and called for enhanced collaboration between countries.
The construction of the pipeline will take two years to complete.
Sources: Africa Oil and Power, Walta Info
Image Source: Africa Oil and Power