Djibouti’s Energy Ministry last week signed a deal with Ethiopia for the construction of a 767km gas pipeline between Ethiopia’s eastern Ogadem Basin and an export terminal on the Red Sea.

According to Djibouti’s Energy Minister, Yonis Ali Guedi: “It is the most expensive project ever built in the Horn of Africa region.” The total cost for the project has not yet been disclosed.

Chinese company Poly-GCL Petroleum Group Holdings Limited has been chosen to lead the construction of the project. Poly-GCL is a subsidiary of Golden Concord Group Limited and features a diverse range of activities from green energy generation to downstream activities including transport, storage and terminal management.

The company made a sizeable gas discovery last March in the Ogaden basin, with estimated reserves 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.

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