ADDIS ABABA (Halbeeg News)-Ethiopian and Djibouti government have signed a deal to construct over the 700km pipeline from Ethiopia to Djibouti.
The countries agreed to build 760 km natural gas pipeline that stretches from Elala and Kalub to Djibouti port.
Ethiopian Minister of Mines and Petroleum Samuel Urkatu and Djibouti’s Minister of Energy in charge of Natural Resource Yonis Ali Guedi signed the agreement.
During the ceremony of the deal signing, Yonis Ali Guedi said that the agreement creates thousands of jobs for citizens of both countries and generates transit income for Djibouti.
According to Ethiopian News Agency (ANA), the 3.2-billion-USD project will be implemented by a Chinese company, Poly-GCL.
The company will also construct a processing plant in accordance with the agreement.
Ethiopian Mines and Petroleum State Minister Koang Tutlam told ENA the Production is expected to begin in 2021
“When we start to export, we will be able to generate $1 billion, and the revenue will increase up to $ 6 and $ 7 billion annually as the flow increases,” he said.
Mid last year, Ethiopian government announced the beginning of crude oil extraction from the country’s Somali dominated region, the government confirmed.
Poly GCL which engaged in oil and gas exploration in March 2017 discovered oil and natural gas in Somali regional state.
Poly-GCL explored the Culub and Hilal gas fields in the Ogaden basin.
During the exploration of the oil and Gas in the region, several Chinese experts and Ethiopian soldiers were killed in 2007 when heavily armed fighters from Ogaden National Liberation Front (ONLF) stormed the site.
Among those killed in the area, were nine Chinese workers, the government of China and Ethiopia condemned the act.
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