Nigeria's Dangote Group Signs $4.2 Billion Natural Gas Supply Agreement with Xieqin Group

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2026-03-18 02:02:22

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People’s Financial News, March 17 — Dangote Group of Nigeria has signed a 25-year natural gas supply agreement with GCL Group, valued at approximately $4.2 billion, to support a large-scale fertilizer production project in Ethiopia. Under the agreement, GCL Group will utilize natural gas resources from the Calub gas field in the Ogaden Basin to provide energy for Dangote Group’s planned urea fertilizer complex in Somali State. The project is expected to start operations in 2029 with an annual capacity of 3 million tons, making it the largest modern fertilizer production base in East Africa. According to the agreement, natural gas will be transported via a dedicated pipeline approximately 108 kilometers long to the fertilizer production facility in Gode. The total investment in the project is estimated at around $2.5 billion, with Dangote Group holding a 60% stake and Ethiopia Investment Holding (EIH) holding 40%.

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