Continental Focus, International Reach

Djibouti and Ethiopia Sign Pipeline Construction Deal

Wednesday, February 20, 2019

Djibouti and Ethiopia signed a deal earlier this month for the construction of a 767-km gas pipeline. The pipeline will be used to transport natural gas produced in Ethiopia’s Ogaden Basin to an export terminal on Djibouti’s Red Sea coast.

Djibouti’s Energy Minister, Yonis Ali Guedi, commenting on the project said, “It is the most expensive project ever built in the Horn of Africa region.”

The total cost for the project has not yet been disclosed.

Chinese company Poly-GCL Petroleum Group Holdings Limited has been chosen to lead the construction of the project. The company made a sizeable gas discovery last March in the Ogaden basin, with estimated reserves between 6-8 Tcf. The field went into production in July 2018.