Ethiopia has approved an agreement that was signed between the governments of Ethiopia and Djibouti for a cross border gas pipeline project.Jan 6th · 1 min read
Ethiopia has approved an agreement that was signed between the governments of Ethiopia and Djibouti for a cross border gas pipeline project.
The state-affiliated Fana Broadcasting Corporate (FBC) made the announcement and said that the Ethiopian House of Peoples’ Representative (HoPR) approved the agreement after it met international requirements which allowed the country to generate foreign currency from gas export.
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Ethiopia had made a discovery of f up to 7 to 8 billion cubic trillion feet (TFC) of natural gas in Ethiopia’s Somali regional state by the Chinese firm Poly-GCL Petroleum Group Holdings Limited (Poly-GCL). This resulted to the signed agreement.
“The agreement which was signed early last year with Djibouti will see construction of a 767-km pipeline that will transport natural gas from Ogaden area to an export terminal in the Red Sea nation of Djibouti,” said FBC.
Poly-GCL has been tasked with installation of a pipeline to transport the gas from fields in landlocked Ethiopia up to ports in neighboring Djibouti in a period of two years. Around 700-km of the natural gas pipeline will be located in Ethiopia, while the rest of the natural gas pipeline will be located in Djibouti.
‘This initiative will bring the much-needed foreign currency to both countries, once the natural gas pipeline project is constructed and commissioned,” said FBC.
Following the discovery of natural gas, the East Africa country has planned to generate US $1bn annually from extraction of natural gas and crude oil deposits.