Dangote Signs $4.2B Gas Supply Deal for Ethiopia Fertilizer

Aliko Dangote, the founder of Dangote Industries Limited and Africa's richest person, stated that Africa cannot continue to export raw materials while importing finished products. He spoke at a signing ceremony in Lagos, where Dangote Industries Limited entered a $4.2 billion, 25-year natural gas supply agreement with GCL Group, a leading private energy conglomerate in China.

This partnership aims to support Dangote's major expansion project in Ethiopia, which includes a $2.5 billion urea fertilizer complex expected to produce 3 million tons per year. The project, with a 60-40 equity structure, is scheduled to begin operations in 2029 and will become East Africa's largest modern fertilizer hub, fulfilling Ethiopia's current urea import demand and supplying neighboring regions.

The natural gas will be sourced from the Calub gas field in Ethiopia's Ogaden Basin, delivered via a dedicated 108-kilometer pipeline. This initiative aligns with Africa's broader objectives to establish integrated energy and food value chains, leveraging local resources for industrial autonomy.