China’s GCL launches first phase of Ogaden LNG project in Ethiopia

According to a statement by GCL, the small-scale skid-mounted liquefaction plant liquefies natural gas from the Ogaden Basin in Ethiopia.

GCL said the first phase will process 200,000 cubic meters of natural gas daily, producing 50,000 tons of liquefied natural gas (LNG) annually.

This output will supply Ethiopia’s domestic industrial parks and end-users.

GCL will deliver the LNG supplies via trucks.

In addition to the launch of the first phase, GCL kicked off the construction of the Ogaden natural gas development Phase II and 1,000 MW gas-to-power project, and the Gode crude oil refinery.

GCL also stated that it plans subsequent phases for exporting to international markets.

Ethiopia is a landlocked country, and its neighbors include Somalia, Kenya, Uganda, South Sudan, Sudan, and Eritrea.

$10 billion

Ethiopian Prime Minister Abiy Ahmed Ali also announced the launch of the first phase via his official social media channels on Tuesday.

He said the first phase of the Ogaden LNG project will have an “annual production capacity of 111 million liters”, while the second phase will “add a capacity of 1.33 billion liters per year. “

Beyond LNG, this facility also “contributes significantly to energy generation, with a production capacity of 1,000 megawatts,” he said.

“Importantly, the plant is not just a gas facility. It serves as a cornerstone of our food sovereignty efforts by providing essential input for fertilizer production. It also supplies critical resources for our energy and crypto-mining initiatives,” the Prime Minister said.

“Without a doubt, all the mega projects we inaugurated today in the Somali region, collectively valued at $10 billion including associated infrastructure, will be carried through to completion,” he said.