Ethiopia is planning to install a pipeline from Somali Regional State to Djibouti, aiming to export natural gas by 2020
As reported in The Ethiopian Herald, a natural gas reserves containing naphtha, kerosene and benzene, was found in Somali Regional State in the 1980s.
The Ethiopian Ministry of Mines, Petroleum and Natural Gas has signed an agreement with Chinese mining company Poly GCL for the development of the natural gas, said the source.
The source has also reported that under the partnership programme, a pipeline from Calub Hilala to Djibouti will also be built during the current fiscal year.
According to the Ethiopian ministry, the natural gas project aims to generate US$1bn per year by exporting gas. In addition, it is also expected to meet domestic demand of the citizens of the country.
The source has further reported that about 124 global mining companies are searching for additional mining opportunities to Abay gorge and Tekeze and Gambela basins, aiming to further explore oil and gas opportunities in the different parts of the country.
Ethiopia’s gas industry is one of the fastest-growing industries in Africa. The country aims to increase natural resources’ contribution to the GDP to 10 per cent from 1.5 per cent by 2025, with gross national income per capita rising from US$1,045 to US$12,736.
