• Dangote signs 25-year gas supply deal with China’s GCL for Ethiopia plant

• The project aims to support local fertilizer production and cut imports

• Ethiopia remains heavily dependent on imported fertilizers

Dangote Group has secured a long-term gas supply agreement to support its fertilizer project in Ethiopia, marking a key step in its plan to build a fully integrated production chain in the country.

On March 16, the company announced a 25-year gas supply deal with China’s GCL Group to feed its fertilizer plant under construction in Gode, in eastern Ethiopia. According to international media reports, the agreement is valued at $4.2 billion.

The gas will be sourced locally from the Calub field in the Ogaden Basin and transported through a dedicated 108-kilometer pipeline directly to the Dangote fertilizer complex.

“Through seamless integration and strategic cooperation with GCL, we will achieve an efficient closed‑loop value chain from natural gas extraction to fertilizer production, taking a crucial step toward enabling Africa to secure greater autonomy over its food security,” said Aliko Dangote, chairman and CEO of Dangote Industries Limited.

GCL has been developing the Ogaden liquefied natural gas (LNG) project in partnership with the Ethiopian government since 2013. The project has faced multiple delays and restructuring phases. A key milestone was reached on October 2, 2025, with the launch of the first phase of the facilities, which have an annual capacity of 111 million liters of LNG.

At the same time, the second phase of development was launched, with plans to raise annual capacity to 1.33 billion liters, although no clear timeline for completion has been announced.

The volume of gas covered by the supply agreement has not yet been disclosed. However, the Dangote fertilizer plant in Gode, expected to start operations by 2029, is designed to produce 3 million tons of urea per year.

The project reflects Dangote’s ambition to fully replace Ethiopia’s current urea imports while also supplying neighboring regional markets.

Ethiopia remains one of Africa’s largest fertilizer importers. In 2024, the country purchased about 2.32 million tons of fertilizer on international markets, according to data from the International Fertilizer Development Center (IFDC).

The IFDC notes that Ethiopia currently has no primary production of inorganic fertilizers, making the Dangote project strategically important for the country’s agricultural and industrial self-sufficiency.

Construction of the Gode fertilizer plant represents a total investment of $2.5 billion.

Until the plant becomes operational, Ethiopia will continue to rely on imports. The government maintains tight control over the fertilizer supply chain. According to the IFDC, more than 90% of fertilizers imported and used in the country are handled through the Ethiopian Agricultural Businesses Corporation (EABC), with distribution to farmers carried out through cooperatives.

Stéphanas Assocle