Sun. May 29th, 2022

Poly GCL Petroleum Investment is negotiating with the Ethiopian Minerals, Petroleum and Bio Fuel Corporation on the government’s interest in the gas development project. The Chinese firm is in the process of developing the natural gas fields in the Ogaden Basin of Ethiopia’s Somali state.

Currently, the Ethiopian government has a 15% stake in the $4 billion Calub and Hilala gas fields development project and the government wants the Ethiopian firm to oversee its stake.

It was revealed in a The Reporter article that executives of Poly GCL and the corporation started negotiations two weeks ago on the modalities that they could work together. “Poly GCL is the operator while the Ethiopian Minerals, Petroleum and Bio Fuel Corporation would be a partner that will follow up the government’s 15% interest in the gas project,” sources said.

Poly GCL says “it is not going to be a joint venture company but Poly GCL will be the sole operator while the corporation is delegated to ensure the fair share of the government coming from the project.”

Ethiopia’s Council of Ministers established the Ethiopian Minerals, Petroleum and Bio-Fuel Corporation with an authorized capital of 15 billion birr in 2016. The corporation comprises three divisions – petroleum, mining and bio-fuel developments. The petroleum division is engaged in the exploration, development and trade of petroleum products. The minerals division prospects for minerals develop and market precious metals, industrial minerals and gemstones. The bio-fuel division is in the process to venture into the cultivation of plants and production of bio-fuel products.

Poly GCL has prepared and summited a gas development plan to the Ministry of Mines and Petroleum that will enable it to develop the proven gas reserves in Calub, and Hilala fields. According to the development plan the Chinese firm will construct a gas pipeline from the gas fields all the way to Djibouti port where it will build a gas treatment plant. The gas treatment plant will convert the gas into LNG (Liquefied Natural Gas) and Poly GCL plans to export the LNG to China.

The Ministry expects Poly GCL to start the gas export by 2021. However, the construction of the pipeline, which was supposed to commence last September, has not yet started.

Source:Energy mix Report

By Rasaas