Ethiopia approves accord with Djibouti to build gas pipeline

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Ethiopia approves accord with Djibouti to build gas pipeline

The Ethiopian House of Peoples’ Representative (HoPR) has approved the signed agreement between Ethiopia and Djibouti to install a cross-border pipeline to transport natural gas.

“The house approved the agreement as it meets international requirements and allow the country to generate foreign currency from gas export,” state-affiliated Fana Broadcasting Corporate (FBC) reported.

Earlier this year, Ethiopia’s Ministry of Mines and Petroleum disclosed that the British energy firm New Age (African Global Energy Ltd) has discovered 1.6 Trillion Cubic Feet of natural gas reserve in the Ogaden basin, Somali Regional State.

Ethiopia then signed the agreement with Djibouti to build the pipeline which will enable it transport natural gas from Ogaden area to an export terminal in the Red Sea nation of Djibouti.

The House of Peoples’ Representative emphasized that the agreement would cement ties between both countries.

In February this year, the Ethiopia Ministry of Mines and Petroleum had disclosed that Chinese company Poly-GCL Petroleum Investment, will construct the 767-km natural gas pipeline.

Once the project is complete and operations began, it will provide foreign exchange for both countries.

Poly-GCL is expected to install a pipeline to transport the gas from Ethiopia up to ports in neighbouring Djibouti in a period of two years. Around 700-km of the natural gas pipeline will be located in Ethiopia, while the rest of the natural gas pipeline will be located in Djibouti, according to the ministry.

Following the discovery of the huge natural gas, Ethiopia announced its plans to generate 1 billion U.S. dollars annually from extraction of natural gas and crude oil deposits.

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