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Chinese Firms Sign Deal to Expand Ethiopia’s LNG Production

BirrMetrics · 15 hours ago · Read the Full Story on BirrMetrics
Chinese Firms Sign Deal to Expand Ethiopia’s LNG Production
AI SUMMARY

GCL Group and Jurong Group have signed an agreement in Addis Ababa for the second phase of Ethiopia's liquefied natural gas project in the Ogaden Basin.

  • GCL Group's Ethiopian subsidiary and Jurong Group (Holding) signed a construction and processing agreement on October 16, 2026, at the Ministry of Mines in Addis Ababa.
  • The contract was signed in the presence of Minister of Mines Alemtsehay Paulos.
  • The agreement covers engineering, construction, natural gas liquefaction, and processing services for the second phase of the Calub gas field project.
  • The contract follows the first phase commissioning in October 2025 and a strategic cooperation framework signed in May 2026.
  • The Ministry of Mines has called for construction of the first module of the second phase to begin as soon as possible.
  • The companies did not disclose the contract's financial value, additional production capacity, financing structure, or completion deadline.
  • The agreement was signed by Fu Zhidong, Executive President of GCL’s Ethiopia division, and Yi Min, Vice President of Jurong Group.
  • Lin Rongsheng, Chairman of Jurong Group, stated the company will contribute its experience in liquefaction infrastructure, storage, transportation, and international trade.
  • The first phase of the project, launched on October 2, 2025, has a designed processing capacity of 200,000 cubic metres per day and an annual production capacity of about 50,000 metric tonnes.
  • The second phase is intended to increase production and extend sales to international markets, building on the first phase's domestic focus.
  • Access to international export markets will require specialized transport and storage infrastructure, with Djibouti identified in previous plans as a potential export route.
  • The agreement follows recent macroeconomic reforms in Ethiopia, including foreign exchange changes relevant to international investors.
Read the Full Story on BirrMetrics
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