Dangote Industries Limited and the Chinese group GCL have signed a $4.2 billion agreement over 25 years to supply natural gas to Dangote’s future urea fertilizer complex in Ethiopia.
The plant, valued at $2.5 billion and owned 60% by Dangote and 40% by Ethiopian Investment Holdings (EIH), will produce 3 million tons of urea per year and is expected to start operations in 2029. The gas will be extracted from the Calub field in the Ogaden basin and transported via a 108 km pipeline to the Somali region.
The project aims to make Ethiopia the leading regional producer of modern fertilizer, reduce dependence on imports, and supply neighboring markets. Analysts estimate that the initiative could generate thousands of direct and indirect jobs and boost the industrial and infrastructural development of the region.
“With smooth integration and strategic cooperation with GCL, we will achieve an efficient closed-loop value chain, from natural gas extraction to fertilizer production, taking a crucial step towards enabling Africa to achieve greater food security autonomy,” said Dangote Industries Limited CEO Aliko Dangote.
This announcement follows Dangote Industries Limited’s recent launch of its $2.7 billion petrochemical complex in Lekki, Nigeria, the country’s largest private industrial project.
