Djibouti-Ethiopia pipeline project
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Djibouti signs gas pipeline and LNG plant deal
The construction of the Ethiopian-Djibouti natural gas pipeline to transfer Ethiopian natural gas to Djibouti will be signed as soon as the government and project partner Chinese energy company POLY-GCL completes negotiations, Dr. Koang Tutlam, the state minister of Ethiopian responsible of mines, petroleum and natural gas said on Monday.
Tutlam shared that as soon as the agreements are signed, the construction of the $1.8 billion pipeline will start with plans for its completion in 18 months.
The project composes of a natural gas pipeline, a liquefaction plant, and an export terminal at Damerjog, Djibouti.
Tutlam explained that the country already has oil imports of about $2 billion each year, but also wants to generate gas income to "protect this money" and meet the country's currency needs.
He said the best way to export Ethiopian natural gas is through LNG.
"The company is also negotiating with the government of Djibouti for the construction of an LNG facility in Djibouti," he told Anadolu Agency.
The LNG facility will enable Ethiopians to send natural gas to overseas countries via the Bab-el-Mandeb Strait located between Yemen on the Arabian Peninsula.
"The biggest gain from this project for us will be employment creation and technology transfer," he said, adding that Ethiopia will also take around 15 percent from these gas exports and will derive income from taxation.
The pipeline project, which includes a 700-kilometer pipeline capable of transporting up to 12 billion cubic meters of natural gas per year, would enable Ethiopia to export 10 million cubic meters of liquefied natural gas (LNG) to China on an annual basis.
Currently Ethiopia has proven gas reserves of 133 billion cubic meters.
Indicating that Ethiopia is a significant source of gold, potassium and iron ore, Tutlam said that five companies are already conducting exploratory work in the country's valuable minefields.
The minister also invited Turkish companies to undertake exploration.
Reporting by Tufan Aktas in Addis Ababa, Ethiopia
Writing by Huseyin Erdogan and Murat Temizer
Anadolu Agency
energy@aa.com.tr
The construction of the Ethiopian-Djibouti natural gas pipeline to transfer Ethiopian natural gas to Djibouti will be signed as soon as the government and project partner Chinese energy company POLY-GCL completes negotiations, Dr. Koang Tutlam, the state minister of Ethiopian responsible of mines, petroleum and natural gas said on Monday.
Tutlam shared that as soon as the agreements are signed, the construction of the $1.8 billion pipeline will start with plans for its completion in 18 months.
The project composes of a natural gas pipeline, a liquefaction plant, and an export terminal at Damerjog, Djibouti.
Tutlam explained that the country already has oil imports of about $2 billion each year, but also wants to generate gas income to "protect this money" and meet the country's currency needs.
He said the best way to export Ethiopian natural gas is through LNG.
"The company is also negotiating with the government of Djibouti for the construction of an LNG facility in Djibouti," he told Anadolu Agency.
The LNG facility will enable Ethiopians to send natural gas to overseas countries via the Bab-el-Mandeb Strait located between Yemen on the Arabian Peninsula.
"The biggest gain from this project for us will be employment creation and technology transfer," he said, adding that Ethiopia will also take around 15 percent from these gas exports and will derive income from taxation.
The pipeline project, which includes a 700-kilometer pipeline capable of transporting up to 12 billion cubic meters of natural gas per year, would enable Ethiopia to export 10 million cubic meters of liquefied natural gas (LNG) to China on an annual basis.
Currently Ethiopia has proven gas reserves of 133 billion cubic meters.
Indicating that Ethiopia is a significant source of gold, potassium and iron ore, Tutlam said that five companies are already conducting exploratory work in the country's valuable minefields.
The minister also invited Turkish companies to undertake exploration.
Reporting by Tufan Aktas in Addis Ababa, Ethiopia
Writing by Huseyin Erdogan and Murat Temizer
Anadolu Agency
energy@aa.com.tr
it's cancelled and given to Eritrea boo hoo
DRACO
VIP
The pipeline is to import refined oil from the middle east and not to export ogaden oil. They've yet to make that call
It's an L for us but a minor one. The next one might be devastating lol
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