Ministry inks agreement to commercialize gas
Addis Ababa, April 24, 2020 (FBC) – The Ministry of Mines and petroleum signed gas commercialization agreement with Chinese firm- Poly GCL Petroleum Investment Ltd, to develop the Ogaden basin’s Calub, Hilala and Shibola gas reserves.
The agreement aimed to utilize natural gas of the area for different purposes and commercialize 4 trillion cubic feet gas to be extracted from the Ogaden reserve sites.
The agreement prioritizes consumption of the natural gases for domestic purposes, the statement from Ministry of Mines and Petroleum indicated.
According to the statement, the gas product reserved for local market will be used as an input for industries engaged in fertilizers and petrochemicals production.
A study suggests that the Ogaden natural gas project will earn Ethiopia close to $6 billion in the next six years.
A number of foreign companies are engaged in exploration and production of natural gases and minerals in Ethiopia.