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News - Financial

$4.2B Gas Deal to Power 3M-Tonne Ethiopia Fertilizer Plant by 2029

Mar 17, 2026
$4.2B Gas Deal to Power 3M-Tonne Ethiopia Fertilizer Plant by 2029


  • Dangote Industries, GCL signed $4.2 billion, 25-year gas supply agreement for Ethiopia fertilizer megaproject.
  • Gas to supply 3 million tonnes/year urea plant valued at $2.5 billion, operational target 2029.
  • Project structured 60:40 between Dangote Group and Ethiopian Investment Holdings (EIH).
  • Gas sourced from Calub field, transported via 108-km pipeline to Gode, Somali Region.
  • Plant to fully replace Ethiopia’s current urea imports and supply regional export markets.
  • GCL has operated in Ethiopia for over 20 years across oil, gas, and LNG infrastructure projects.
  • Project integrates upstream gas, midstream pipeline, downstream fertilizer in single value chain.


why it matters?

A $4.2B, 3-million-tonne project can eliminate Ethiopia’s fertilizer imports, reduce FX demand, and build a domestic energy-to-fertilizer industrial chain by 2029.