Ethiopia and Djibouti signed agreement for laying down 760 km natural gas pipeline that stretches from Elala and Kalub to Djibouti port.
The Chinese company Poly-GCL will execute the 3.2-billion-USD project that includes the construction of a processing plant, it was learned.
Production is expected to begin in 2021, Mines and Petroleum State Minister Koang Tutlam told ENA.
โWhen we start to export, we will be able to generate 1 billion USD, and the revenue will increase up to 6 and 7 billion USD annually as the flow increases,โ he added.
The potential natural gas reserve of the two sites is about 8 trillion cubic feet, the state minister said, adding that 3 billion cubic feet natural gas will be piped annually when operation begins.
Minister of Mines and Petroleum Samuel Urkatu and Djiboutiโs Minister of Energy in charge of Natural Resource Yonis Ali Guedi signed the agreement.
Yonis Ali Guedi told ENA that the agreement creates thousands of jobs for citizens of both countries and generates transit income for Djibouti.