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Dangote Industries Limited has signed a $4.2 billion, 25-year natural gas supply agreement with China’s GCL Group to power its planned fertilizer complex in Ethiopia, marking a major milestone in China–Africa industrial collaboration.
The deal will supply gas from Ethiopia’s Calub field to a 3-million-tonne-per-year urea plant in the Somali Region, a $2.5 billion project being developed in partnership with Ethiopian Investment Holdings. The facility is scheduled for commissioning in 2029.
Once operational, the plant is expected to become East Africa’s largest fertilizer hub, meeting Ethiopia’s domestic demand and supplying regional markets, significantly reducing reliance on imports.
Dangote described the project as a strategic shift toward value addition within Africa, emphasizing the importance of linking natural gas resources to industrial production to strengthen food security and economic independence.
GCL Chairman Zhu Gongshan said the partnership reflects a new model of ecosystem-based cooperation, combining GCL’s energy expertise with Dangote Group’s industrial footprint across Africa.
The gas will be delivered via a dedicated 108-kilometre pipeline to the plant in Gode, forming a fully integrated “gas-to-fertilizer” value chain. Analysts say the project will drive industrialization in Ethiopia’s Somali Region, create jobs, and support infrastructure growth.
Beyond its economic impact, the initiative aligns with global low-carbon goals by using natural gas as a cleaner industrial feedstock, while advancing Africa’s push for energy security and agricultural self-sufficiency.
The project is also seen as a flagship under China’s Belt and Road framework, underscoring deepening economic ties and a new phase of large-scale, resource-backed industrial development across Africa.
