Friday, March 8, 2019

Chinese gas pipeline between Djibouti and Ethiopia

(Africa Intelligence) - Having set up a joint venture with Abiy Ahmed Ali's government, OCP, the firm run by Mostafa Terrab is now focusing on operational questions at its fertiliser plant.

 The phosphate specialist is in talks with Poly-GCL Petroleum Group Holdings (owned by the state arms company China Poly Group) to secure a supply of the natural gas that the firm has been producing in the Ogaden since 2013 . In March 2018, the Chinese giant signed a deal with the Ethiopian Ministry of Mines and Petroleum to construct a gas pipeline between Ethiopia and Djibouti. As it has not raised funding for this project, Poly-GCL will subcontract the building of the 767 km pipeline to China Civil Engineering Construction Corp (CCECC), which is also constructing the rail link between Addis Ababa and Djibouti that will likewise be used for transporting hydrocarbons . At one end of the pipeline in Djibouti, Xinda Group is building a liquefaction plant and a terminal for exporting natural gas . OCP is hoping that the location of its plant in Dire Dawa, which is along the Chinese supply line, will enable it to obtain gas to power its phosphate factory. This would only involve extending the CCECC pipeline by a few kilometres.