Ethiopia, Djibouti Sign $4b Gas Pipeline Construction Project Deal

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Based on the production sharing agreement, the Ethiopian government has a 15 percent stake while China’s Poly-GCL owns a majority 85 percent.

Ethiopia and Djibouti signed an agreement to construct a 767km Calub and Hilala natural gas pipeline project linking the two countries.
The 767km long Calub and Hilala gas development project in the Ogaden region of Ethiopia is estimated to cost four billion dollars.


Ethiopia and Djibouti have signed an agreement to construct a 767km natural gas pipeline project linking the two countries.

Ethiopia’s Minister of Mines and Petroleum, Dr Samuel Hurcato, and Minister of Energy in Charge of Natural Resources of Djibouti, Mr Yonis Guedi, signed the agreement in Addis Ababa today.

Dr Samuel on the occasion said the agreement, which was signed after extensive negotiations, ensures the mutual benefit of both countries.

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When it is completed, the project will generate foreign currency besides creating more employment opportunities allowing the country to export natural gas from Calub Hilala fields, according to the Minister.

Mr Guedi for his part said the project will further cement the long-standing ties between the two nations.

About 700 km of the pipeline stretches from Calub Hilala fields to Djibouti border within Ethiopia, while the remaining 67 Km is within Djibouti.

According to the agreement, the construction of the pipeline commences this Ethiopian fiscal year and will take two years for completion.