Ethiopia, Chinese Firm Sign Gas Commercialization Deal

ADDIS ABABA – Ethiopia has signed today an agreement with Chinese firm- Poly GCL Petroleum Investment Ltd, to commercialize the gas reserves in the eastern part of the country.

The 4 trillion cubic feet natural gas reserve is located in Ogaden basin’s Calub, Hilala and Shibola fields of Somali regional state.



The agreement would enable the Chinese firm to deliver both for export and satisfy local demand.

The deal, however, targets to satisfy domestic demand at first, said the ministry of mine and petroleum’s statement issued on Facebook today.

Fertilizers and petrochemicals firms are expected to be the main consumers of the gas, domestically.

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.

A study suggests that the Ogaden natural gas project will earn Ethiopia close to $6 billion in the next 20 years, according to the ministry.

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Image: Ethiopian Mines and Petroleum minister Dr Samuel Urkato speaking at the signing event today

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