Dangote signs $4.2bn gas supply deal to support Ethiopia fertiliser production
Dangote Industries Limited has secured a $4.2 billion, 25-year natural gas supply deal with China’s GCL Group to power a fertiliser expansion project in Ethiopia.
The agreement will provide long-term gas supply for a planned 3-million-tonne-per-year urea fertiliser complex, expected to expand production capacity in East Africa.
The fertiliser plant, valued at $2.5 billion, is being developed through a joint venture between Dangote Group and Ethiopian Investment Holdings, with equity stakes of 60 per cent and 40 per cent respectively.
Construction of the facility is scheduled for completion by 2029. Upon completion, the plant is expected to supply Ethiopia’s domestic fertiliser needs and serve export markets across the region.
The agreement was finalised in Lagos and reflects ongoing industrial collaboration between African and Chinese firms in energy and manufacturing.
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Dangote Group has expanded its operations across Africa through investments in cement, energy, and petrochemicals, including Dangote Cement and the Dangote Refinery.
The fertiliser project is part of efforts to strengthen local production capacity and reduce reliance on imported agricultural inputs.
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