Aliko Dangote’s Dangote Industries Limited has signed a $4.2 billion, 25-year natural gas supply agreement with GCL Group to power a major fertiliser project in Ethiopia.
The agreement, finalised in Lagos, Nigeria, ranks among the largest industrial partnerships between China and Africa.
It will provide gas for a planned three million tonne per year urea fertiliser plant valued at $2.5 billion, with operations expected to begin in 2029.
The project is being developed alongside Ethiopian Investment Holdings and is set to become the biggest fertiliser production hub in East Africa.
It is expected to meet domestic demand in Ethiopia while supplying neighbouring countries, reducing reliance on imports and strengthening agricultural output.
Natural gas for the facility will come from the Calub Gas Field in the Ogaden Basin and will be transported through a 108 kilometre pipeline to the plant in Gode, located in the Somali Region.
Dangote said the initiative reflects the need for Africa to shift from exporting raw materials to building value adding industries locally.
He added that the project would establish a full value chain from gas extraction to fertiliser production, supporting food security across the continent.
GCL Group chairman Zhu Gongshan noted that the partnership would boost development in Ethiopia’s energy, chemical, and agricultural sectors while deepening cooperation between Chinese and African businesses.
Analysts say the project could drive job creation, infrastructure growth, and economic expansion in East Africa, while also aligning with cleaner industrial practices through gas based fertiliser production.
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