Ethiopia, Djibouti Ink Deal to Install Gas Pipeline

February 16 , 2019


Ethiopia, Djibouti Ink Deal to Install Gas Pipeline

Ethiopia and Djibouti signed an agreement to lay down a 760Km natural gas pipeline that stretches from Elala and Kalub, Somali Regional State, to Djibouti Port. Samuel Urkato (PhD), minister of Mines, Petroleum & Natural Gases, and Djibouti’s minister of energy and natural resources, Yonis Ali Guedi, signed the agreement. The Chinese company, Poly-GCL, will execute the 3.2-billion-dollar project that includes the construction of a processing plant, and the production is expected to begin in 2021. “When we start to export, we will be able to generate one billion dollars, and the revenue will increase up to six and seven billion dollars annually as the flow increases,” says Koang Tutlam, state minister for Mines, Petroleum & Natural Gases. The potential natural gas reserves of the two sites is about eight trillion cubic feet, according to the state minister, adding that three billion cubic feet of natural gas will be piped annually when the operation begins.


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