Dangote Industries Limited (DIL) and GCL Group, China’s leading private energy con‑ glomerate, have formalised a land‑ mark $4.2 billion, 25‑year natural gas supply agreement to power Dangote Group’s major expansion projects in Ethiopia.
A statement yesterday said the agreement, signed in Lagos, reinforced one of the most significant China–Af‑ rica industrial partnerships to date. Under the long‑term arrangement, GCL Group will supply stable natural gas to Dangote Group’s upcoming 3‑million‑tonne‑per‑year urea fertil‑ izer production complex in Ethiopia.
The plant, valued at $2.5 billion, is being developed under a 60:40 equity structure between Dangote Group and Ethiopian Investment Holdings (EIH), respectively, and is scheduled to begin operations in 2029. Once commissioned, the facil‑ ity will become East Africa’s largest modern fertilizer production hub, fully meeting Ethiopia’s current urea import demand while supplying neighbouring regional markets.
The project is expected to significantly reshape East Africa’s fertilizer land‑ scape, reducing reliance on imports and strengthening agricultural self‑sufficiency. The natural gas supplied by GCL will be sourced from the Calub Gas Field in Ethiopia’s Ogaden Basin and delivered via a dedicated 108‑kilometre pipeline directly to the Dangote fertil‑ izer complex in Gode, Somali Region.
The initiative aligns with Africa’s broader objective of establishing an integrated energy‑to‑food value chain, leveraging local resources to drive in‑ dustrial autonomy. Describing the significance of the collaboration, Aliko Dangote, Presi‑ dent/Chief Executive of Dangote In‑ dustries Limited, said: “Africa’s energy industry cannot continue indefinitely exporting raw materials while im‑ porting finished products. We must pursue a new path of highly autono‑ mous development.
Through seamless integration and strategic cooperation with GCL, we will achieve an efficient closed‑loop value chain from natural gas extraction to fertilizer production, taking a crucial step toward enabling Africa to secure greater autonomy over its food security.” Chairman of GCL Group, Mr. Zhu Gongshan, also reaffirmed the com‑ pany’s confidence in the partnership, noting that the agreement was made possible through the facilitation and support of the Ethiopian government.
“This cooperation will enable both sides to expand new frontiers in Ethio‑ pia’s energy, chemical, and food secu‑ rity sectors while transitioning from a ‘business going global’ model toward a mutually beneficial ecosystem‑based framework. Leveraging GCL’s integrat‑ ed oil and gas operations in Ethiopia and Dangote Group’s extensive indus‑ trial footprint across Africa, the part‑ nership will significantly enhance our service capabilities and market reach across the continent.”
