Ethiopia and Djibouti to build gas pipeline to the Red Sea

Ethiopia has signed a deal to develop a gas pipeline travelling between the nation and the Red Sea with Djibouti.

The pipeline will transport gas originally found in the country during the 1970s to an export terminal, Reuters reported.

In 2013, the Chinese energy firm POLY-GCL Petroleum Investments has developed the Calub and Hilala fields in Ethiopia’s eastern Ogaden Basin.

Over a year ago, the company signed a Memorandum of Understanding (MoU) with Djibouti to built a natural gas pipeline.

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Under the agreement, the business also committed to invested US$4bn into a liquefaction plant and export terminal in Damerjog.

According to the Ethiopian government, production is anticipated to begin in 2020.

“It is the most expensive project ever built in the Horn of Africa region,” Yonis Al Guedi, the Energy Minister of Djibouti, informed Reuters.

“The two parties have reached an agreement in principle to allow them to benefit from the project in an equitable manner.”

The continent’s eastern seaboard also features liquefied natural gas projects in Tanzania and Mozambique.