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Ethiopia, Djibouti sign gas pipeline deal

Ethiopia, Djibouti sign gas pipeline deal

Ethiopia

Ethiopia and Djibouti have a signed a deal to build a pipeline to carry Ethiopian gas to an export terminal in the Red Sea state.

Djibouti’s Energy minister, Yonis Ali Guedi told Reuters late Saturday that the deal laid out ‘’ key terms that will serve as a basis’‘ for related concession contracts.

‘’ It is the most expensive project ever built in the Horn of Africa region’‘, he said adding that both parties have reached a deal in principle for mutual benefits.

It is the most expensive project ever built in the Horn of Africa region.

Ethiopia found extensive gas deposits in its eastern Ogaden Basin in 1970.

China’s POLY-GCL Petroleum investments has been developing the Calub and Hilala fields there since signing a production sharing agreement in 2013.

Reuters

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