LAGOS, Nigeria – In a move set to redefine East Africa’s industrial landscape, Dangote Industries Limited (DIL) and China’s energy giant, GCL Group, have formalised a massive US$4.2 billion natural gas supply agreement.
The 25-year landmark deal, signed in Lagos, will provide the essential energy required to power Dangote’s upcoming 3-million-tonne-per-year urea fertilizer complex in Ethiopia.
The project represents a critical step in Aliko Dangote’s vision to end Africa’s reliance on imported finished goods by leveraging the continent’s raw materials.
Under the terms of the agreement, GCL Group will supply stable natural gas from the Calub Gas Field in Ethiopia’s Ogaden Basin.
The gas will be transported via a newly constructed 108-kilometre pipeline directly to the Dangote fertiliser complex located in Gode, Somali Region.
The fertiliser plant itself is a US$2.5 billion investment, developed through a 60:40 equity partnership between the Dangote Group and Ethiopian Investment Holdings (EIH).
With operations slated to begin in 2029, the facility is expected to become the largest modern fertiliser hub in East Africa.
Speaking at the signing ceremony, Aliko Dangote, President/CE of Dangote Industries Limited, emphasised the shift toward industrial autonomy.
"Africa’s energy industry cannot continue indefinitely exporting raw materials while importing finished products.
“Through strategic cooperation with GCL, we will achieve an efficient closed-loop value chain from natural gas extraction to fertiliser production, taking a crucial step toward enabling Africa to secure greater autonomy over its food security” Dangote stated.
Mr Zhu Gongshan, Chairman of GCL Group, echoed these sentiments, noting that the partnership transitions from a simple global business model to a mutually beneficial ecosystem.
He credited the Ethiopian government’s leadership for facilitating the historic synergy.
Industry analysts suggest the project carries triple-bottom-line value:
Food Security: It will fully meet Ethiopia’s current urea demand and supply neighbouring markets.
Job Creation: Thousands of direct and indirect jobs are expected to be created in the Somali Region.
Green Transition: The natural gas-to-chemical pathway aligns with global low-carbon trends, offering a model for clean industrialisation in Africa.
This collaboration stands as a flagship initiative under the Belt and Road Initiative, demonstrating how Chinese technological expertise and African resource endowments can merge to create sustainable, long-term economic transformation.
#DangoteGroup #GCLGroup #Ethiopia #Agriculture #FoodSecurity #NaturalGas #ChinaAfrica #Industrialization #Fertilizer #EnergyNews
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