TheNigerianVoice Online Radio Center

Ethiopian Gas For Mass Export A Reality By 2019, Say Chinese

By Correspondent | Capital Ethiopia
Listen to article

China Merchant Group, owner of China Merchant Holding International (CMHI), disclosed that it will manage the liquefied natural gas(LNG) terminal project at the Port of Djibouti.

The company undertaking the biggest Doraleh Multipurpose Port (DMP) at Djibouti is announced that it will also undertake the project would see it transport LNG from south eastern Ethiopia.

Another Chinese energy company, Poly-GCL Petroleum Group Holding Limited, has also agreed with Ethiopia to develop natural gas reserves identified back in the Emperor’s era.

Poly-GCL, a joint venture between China POLY Group and GCL Group, has also agreed with the government of Djibouti to construct an LNG terminal and refinery to export the product to China.

Late this week, the logistics giant, China Merchant Group, disclosed that it would carry out the LNG terminal project located at Damerjog, few kilometers south of the capital Djibouti.The USD 4 billion project also includes the construction 803km oil pipeline from Calub and Hilala of the Ethiopian Somali region to the port.The company will additionally construct a refinery at the port.The Calub gas field is located 1200 km south-east of Addis Ababa. Hilala is located 80 km further to the east. The total gas reserve is estimated at 118 billion cubic meters. An American company first discovered the gas fields in 1972 and reserves were confirmed by a Russian company, SPEE, in the 1980s.

The current mega gas project involves three countries – Djibouti, Ethiopia and China – which have agreed to work together in order to make this project successful and operational as soon as possible.

In January 2013, China Merchant Holding International (CMHI) bought a 23.5 percent share ofthe Port of Djibouti andalso has undertakings in the construction of other ports in Djibouti.

The company hopes to start commercial gas production in 2019.In March,POLY-GCL stated that it has signed a memorandum of understanding for the transport of LNG with China LNG Shipping Company.

In the initial stage of the project, 3 million tons of LNG will be exported every year.