China moves on $4 bln Ethiopian export project

By Li Xin 13 April 2016
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An LNG filling station in Jiangsu province, which could receive gas from the Ethiopian project. (Ministry of Transport) An LNG filling station in Jiangsu province, which could receive gas from the Ethiopian project. (Ministry of Transport)

Chinese company Poly-GCL Petroleum Group Holdings is moving ahead with its $4 billion project to export gas from southeast Ethiopia’s Hilala and Calub gas fields to China after a drilling programme showed promise.

Two appraisal wells drilled last year yielded better-than-expected results, Liang Jin, gas manager at commodities consultancy JYD Information, told Interfax Natural Gas DailyPoly-GCL said in February that "three sets of oil and gas shows had been detected".

Project developers laid the foundation stone in early March. Construction should start in August and take three years to complete, a PR representative for the government of neighbouring Djibouti, from where the gas will be exported, told NGD last month. Liang said Poly-GCL will begin work on a pipeline and wharf this year.

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