Dangote Industries and GCL Group Sign $4.2 Billion Natural Gas Supply Agreement for Ethiopia's Fertilizer Plant
Dangote Industries Limited and GCL Group have signed a $4.2 billion, 25-year natural gas supply agreement to support a urea fertilizer production complex in Ethiopia. The agreement, formalized in Lagos, will see GCL Group supply gas from the Calub Gas Field to the Dangote facility in Gode, expected to start operations in 2029. The project aims to meet Ethiopia's urea demand and enhance regional food security, while fostering industrial development in East Africa.
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Dangote Industries Limited (DIL) and GCL Group have established a $4.2 billion, 25-year natural gas supply agreement to support a 3-million-tonne-per-year urea fertilizer production complex in Ethiopia. The facility, valued at $2.5 billion, will operate under a 60:40 equity structure between Dangote Group and Ethiopian Investment Holdings and is scheduled for operation in 2029.
GCL will supply natural gas sourced from the Calub Gas Field through a 108-kilometre pipeline to the site in Gode, Somali Region. This project aims to enhance Ethiopia's agricultural self-sufficiency and reduce import reliance while creating employment opportunities and contributing to regional infrastructure development.
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