LNG

Chinese aim to nail down concept for Djibouti LNG

Ethiopia is fast-tracking gas production for the project, but regional instability and negotiations with liquefaction providers could cause delays Ethiopia is fast-tracking gas production for the project, but regional instability and negotiations with liquefaction providers could cause delays.
By Felix Janvrin 31 July 2018 0 31960
Officials from Ethiopia and Poly-GCL at a signing ceremony for the Calub field. The handover of the Calub field to Poly-GCL in July 2014. (Poly-GCL)

Ethiopia has started testing gas production from its Ogaden Basin fields as it takes steps to fast-track revenues from a pioneering LNG export plant in neighbouring Djibouti. However, continuing negotiations with potential liquefaction providers now appear likely to disrupt the plant’s timeline, while logistical and security risks could deter further investment in Ethiopia’s emerging upstream industry.

Poly-GCL, a consortium of China Poly Group and Hong Kong-based Golden Concord Group, began extracting small quantities of oil and gas at the Calub and Hilala fields in Ethiopia’s Somali...