Aliko Dangote’s Dangote Industries Limited has signed a $4.2 billion, 25-year natural gas supply deal with China’s GCL Group to fuel its planned fertilizer project in Ethiopia. The agreement will support a 3-million-tonne-per-year urea plant, a $2.5 billion venture expected to start operations in 2029.
The facility, developed with Ethiopian Investment Holdings, aims to become East Africa’s largest fertilizer hub, meeting local urea demand and supplying neighboring countries. The project will reduce reliance on imports and boost agricultural productivity in the region.
Gas for the plant will be sourced from the Calub Gas Field in Ethiopia’s Ogaden Basin and transported through a 108-kilometre dedicated pipeline to the Gode facility in the Somali Region.
Dangote emphasized that the project promotes industrialization in Africa by creating a complete value chain from gas extraction to fertilizer production, strengthening local economies and food security.
GCL Group Chairman Zhu Gongshan said the collaboration would expand opportunities in Ethiopia’s energy, chemical, and agricultural sectors, further enhancing China–Africa business ties.
Analysts highlight the project’s potential to create jobs, improve infrastructure, and support low-carbon fertilizer production, positioning Ethiopia as a leader in regional industrial and agricultural growth.
