Djibouti Announces Start of Mega Gas Project

Djibouti announced a mega gas project on Thursday.

A groundbreaking ceremony was held on Thursday in Damerjog, Djibouti for the $4 billion project which will be fully funded by the China's POLY-GCL Petroleum Group Holdings Limited. The project includes the construction of a natural gas pipeline, a liquefaction plant and a marine terminal.

POLY-GCL will cooperate in building a natural gas pipeline from the Ogaden Basin in Ethiopia to Djibouti, where the natural gas will be processed and transported all over the world. The 700 km pipeline will transport up to 12 billion cubic meters of natural gas annually from Ethiopia to Djibouti. The liquefaction plant, it will have a production capacity of 10 million tons of LNG per year.

Work on these projects will be spread over three years.

Recently, President of Djibouti, Ismail Omar Guelleh and Ethiopian Premier, Hailermariam Desalegn, signed a framework agreement for the cross-border pipeline between the two countries as well as a Joint Operating Agreement for the pipeline with POLY-GCL Petroleum.