Lawmakers Approve Natural Gas Pipeline Deal with Djibouti

ADDIS ABEBA – Lawmakers approve today an agreement with Djibouti to build a pipeline to transport Ethiopia natural gas to an export terminal in the Red Sea state.

The agreement to build a 765km natural gas pipeline was signed at the beginning of this year and has been under discussion among members of the lower house of parliament since November.

The members of parliament have approved the agreement unanimously.

Chair of the House’s Natural Resources, Irrigation and Energy affairs standing Committee Fetiya Yusuf said the deal was carried out in a way that meets international requirements and explicitly stated the responsibilities of the signatories.

Its implementation would allow the country to generate foreign currency from gas export, she said.

The deal, named as ‘agreement between the government of the Ethiopia and Djibouti on the transit of natural gas pipeline ratification proclamation,’ – grants Ethiopia full ownership and title over the natural gas in the pipeline

Ethiopia found extensive gas deposits in its eastern Ogaden Basin in the 1970s. China’s POLY-GCL Petroleum Investments has been developing the Calub and Hilala fields there since signing a production-sharing deal with Ethiopia in 2013.