Djibouti Mega Gas Project Commences

Ethiopia and Djibouti agree on $1.55Bn pipeline
Ethiopia and Djibouti agree on $1.55Bn pipeline
Ethiopia and Djibouti agree on $1.55Bn pipeline

ENEGY BRIEF, March 4, 2016

Djibouti has announced a mega gas project. Djibouti’s President Ismaïl Omar Guelleh officially presided over the foundation stone laying ceremony for the project.

The project will comprise a natural gas pipeline, liquefaction plant and an export terminal at at Damerjog, Djibouti.

Upon completion, Ethiopia will be able to penetrate China market. Ethiopia will be use the pipeline to export gas to China and thereby accelerate socio-economic development across the region.

Ethio-Djibouti Gas Pipeline Project to Commence Next Month

The new pipeline will be 700 kilometers and will transport up to 12 billion m3/y of natural gas from Ethiopia to Djibouti.

After completion of the liquefaction plant, it will have a capacity to produce up to 10 million t of liquefied natural gas (LNG) per year.

Djibouti mega project will be funded by the Chinese firm POLY-GCL Petroleum Group Holdings Ltd at a tune US$4 billion and construction is expected to commence shortly. The project is also expected to be completed within three years.

China has gained a lot of interest in Djibouti where it is also constructing a military naval base.

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