Chinese Company to Install over 4 Billion USD Natural Gas Pipeline from Ethiopia to Djibouti
Ministry of Mines, Petroleum and Natural Gas and the Chinese POLY-GCL company have concluded an agreement for the installation of a natural gas pipeline from Ogaden to Djibouti.
POLY-GCL Company has been exploring petroleum and natural gas in the Ogaden basin since 2013.
Mines, Petroleum and Natural Gas Minister, Motuma Mekasa said 5-6 trillion cubic feet of natural gas was discovered.
According to the Minister, Chairman of POLY-GCL had discussion with Prime Minister Hailemariam Desalegn about how the natural gas could be transported to Djibouti and then to China.
The current agreement to transfer the natural gas to Djiboutiis an important step towards exporting the natural gas, he pointed out.
Some 4.3 billion USD is allotted for the project, while 360 million USD has been consumed for the exploration.
Upon going operational, the project is expected to generate 1.4 billion USD annually. The revenue is expected to grow to up to 7 billion USD in the coming years, Motuma added.
The Minister stated that the project will also benefit companies that are engaged in petroleum exploration around Ogaden.
Chairman of the POLY-GCL,Barton Yu said his company will strive to complete the project by 2020.
In related news, President Mulatu Teshome, who held talks with Barton Yu, Chairman of the POLY-GCL, said the engagement of the company in the installation of the pipeline will boost the investment ties of the two countries.
The president assured Barton Yu that the government will provide all round supports for the successful implementation of this project.
