Dangote Industries and GCL Group Sign $4.2 Billion Gas Supply Deal for Ethiopia Fertiliser Plant
Dangote Industries Limited has signed a $4.2 billion, 25-year natural gas supply agreement with GCL Group to power a fertiliser project in Ethiopia. The facility, valued at $2.5 billion, aims to produce three million tonnes of urea annually and is expected to commence operations in 2029. This partnership is part of a broader strategy to enhance industrial cooperation between Africa and China, reducing import dependence in East Africa.
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Dangote Industries Limited and GCL Group have signed a $4.2 billion, 25-year natural gas supply agreement for a fertiliser production project in Ethiopia. The deal will supply gas from the Calub Gas Field to a planned urea fertiliser complex in Gode, Somali Region.
The facility will produce three million tonnes of urea annually and is set to start operations in 2029. The project, valued at $2.5 billion, is a joint venture with Ethiopian Investment Holdings, with Dangote holding a 60% stake. It aims to meet Ethiopia's urea demand and serve neighboring countries, reducing reliance on imports and enhancing local agricultural capacity.
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