Ogaden: Fears over China's Gas Pipeline
On 24 April, the Ethiopian government signed a deal with Hong Kong-based multi-billion dollar Chinese petroleum and natural gas developer, GCL-Poly Energy Holdings Limited. According to the agreement, the company will construct a pipeline to make the natural gas available to the domestic and international market. As a consequence, gas and oil exploration is underway in the Ogaden region. Looking at the lack of representation of the Ogaden people in the Ethiopian government, fears are rising that this trade deal might further deteriorate the Ogaden people's living conditions.
Below is an article by borkena
Ethiopia’s Ministry of Mining and Petroleum says the natural gas deposit identified so far could generate $6 billion revenue over 20 years. Chinese company is to develop and market it. Unclear how much Ethiopia is spending for the project.
GCL-Poly Energy Holdings Limited, Hong Kong-based multi-billion dollar Chinese petroleum and natural gas developer, has signed a deal with the Ethiopian government on Friday, Ethiopian Broadcasting Corporation (EBC) reported.
The Chinese company provides oil & gas development, transportation, storage, sales services among other things.
According to the agreement, the company will construct a pipeline to make the natural gas available to a domestic and international market.
The product for the international market will be exported to Djibouti first, through a pipeline, and transformed into a liquid one. The company says, as reported by EBC, it can transform up to 215 million cubic feet of natural gas to liquid daily and make available up to 1.5 million metric tonnes of liquid natural gas.
It is also indicated in the agreement that about 190 million cubic feet of natural gas will be available daily for a local fertilizer company, yet to be constructed, as reported by the source.
Natural gas is developed in Kalubna and Hilala areas of the Ethiopian Somali region.
The Mining and Petroleum Ministry says Natural gas and oil exploration is underway in six regions in the Ogaden area. An estimated eight trillion cubic feet of natural gas is available in the region.
It is unclear as to when the project is starting. Moreover, how much the Chinese company is making from the project is unknown.
Based on a Reuters report, China’s POLY-GCL Petroleum Group Holdings Ltd has signed a memorandum of understanding (MoU) for a $4billion project with neighboring Djibouti.
Photo: GCL-Poly Energy Holdings Limited rep. making speech on the occasion of singing the deal. Credit: Prosperity Party