ADDIS ABABA (ENA)–Ethiopia and Djibouti have signed agreement for laying down 760 km natural gas pipeline that stretches from Elala and Kalub to Djibouti port.
The Chinese company Poly-GCL will execute the 3.2-billion-USD project that includes the construction of a processing plant, it was learned.
Production is expected to begin in 2021, State Minister for Mines, Petroleum and Natural Gas of the Federal Democratic Republic of Ethiopia (FDRE), Koang Tutlam Dung (PhD) told the Ethiopian News Agency (ENA).
“When we start to export, we will be able to generate 1 billion USD, and the revenue will increase up to 6 and 7 billion USD annually as the flow increases,” Dr. Koang said.
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The potential natural gas reserve of the two sites is about 8 trillion cubic feet, the state minister said, adding that 3 billion cubic feet natural gas will be piped annually when operation begins.
FDRE’s Minister of Mines and Petroleum, Samuel Urkato (PhD), and Djibouti’s Minister of Energy in charge of Natural Resources, Yonis Ali Guedi, signed the agreement.
Yonis Ali Guedi told ENA that the agreement to lay natural gas pipeline creates thousands of jobs for citizens of both countries and generates transit income for Djibouti.
GCL-Poly, founded in 1996 and headquartered in Hong Kong, is a subsidiary of Golden Concord Group Limited, a green energy supplier in China, providing power and heat via co-generation, incineration and wind power. As of 2009 it was the largest supplier of polysilicon in China, and is also a supplier of electronic wafers for the solar industry.
Source: ENA
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