Chinese firm Poly-GCL Petroleum Group Holdings Ltd. will build the 767-kilometer (477-mile) Ethiopia-Djibouti natural gas pipeline, the Ethiopia Ministry of Mines and Petroleum (MoMP) announced Saturday.
In a press statement, MoMP said Ethiopian and Djiboutian government officials have agreed Poly-GCL will start the natural gas pipeline project construction this year, Xinhua reported.
Both countries hope to earn much needed foreign currency once the natural gas pipeline project is constructed and commissioned, Kallanish Energy understands. The Ethiopian government last April announced plans to generate $1 billion annually from the production of natural gas and crude oil.
Poly-GCL is expected to install a pipeline to transport the gas from fields in landlocked Ethiopia up to ports in neighboring Djibouti over a two-year period. Roughly 700 km (435 miles) of the line will be located in Ethiopia, while the rest of the pipeline will be in Djibouti.
POLY-GCL is a joint venture between state-owned China POLY Group Corp. and privately-owned, Hong Kong-based Golden Concord Group, a green energy supplier in China.
This post appeared first on Kallanish Energy News.