Dangote, GCL Seal $4.2bn Gas Deal for Ethiopia Fertiliser Hub

Dangote Industries Limited has signed a $4.2 billion, 25-year natural gas supply agreement with China’s GCL Group to power major expansion projects in Ethiopia. The deal will support a three million tonne per year urea fertiliser plant being developed in partnership with Ethiopian Investment Holdings, positioning the project as one of the most significant China–Africa industrial collaborations.

Gas for the facility will be sourced from the Calub Gas Field in the Ogaden Basin and transported via a dedicated 108-kilometre pipeline to the plant in Gode, Somali Region. Once operational in 2029, the complex is expected to become East Africa’s largest fertiliser hub, meeting Ethiopia’s domestic demand and supplying regional markets.

Executives including Aliko Dangote and Zhu Gongshan say the partnership advances an integrated “gas-to-fertiliser” value chain, strengthening food security, industrial capacity, and regional development. The project is also expected to generate jobs, boost infrastructure, and support a low-carbon industrial transition across East Africa.

 

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