Prime Minister Abiy Ahmed Unveils Ogaden LNG Project, Fertilizer Plant, and Oil Refinery Worth $5 Billion
Ethiopian Prime Minister Abiy Ahmed has inaugurated the first phase of the Ogaden Liquefied Natural Gas (LNG) Project in Calub, marking a major step toward the country’s long-term goal of energy independence and industrial expansion.
The newly commissioned facility is designed to produce 111 million liters of natural gas annually and generate up to 1,000 megawatts of electricity.
During the ceremony, Prime Minister Ahmed also laid the foundation stone for the second phase of the Ogaden LNG Project, which will significantly scale up capacity to 1.3 billion liters per year once completed.
In addition, Ahmed announced two landmark projects — a $2.5 billion fertilizer plant in partnership with Nigeria’s Dangote Group and a $2.5 billion oil refinery to be developed by a Chinese company.
Under the August agreement with Dangote Group, Ethiopia will hold a 40% stake, while Dangote will own 60% of the fertilizer plant, which aims to produce three million tons of fertilizer annually.
The planned Gode Oil Refinery will process around 70,000 barrels of crude oil per day, sourcing feedstock from the Hilala oil field in Ethiopia’s Ogaden Basin.
Although specific completion dates have not been announced, government spokesperson Billene Seyoum said that initial phases are expected to be finalized within 24 months.
With a population exceeding 135 million, Ethiopia is Africa’s second most populous nation after Nigeria. Prime Minister Ahmed emphasized that these projects will strengthen the country’s industrialization agenda, enhance food and energy security, and elevate Ethiopia’s global economic standing.
The announcements come shortly after the launch of the Grand Ethiopian Renaissance Dam (GERD) — Africa’s largest hydropower facility which now generates more than 5,000 megawatts of electricity, underscoring Ethiopia’s ambition to become a regional energy powerhouse.
