China’s Golden Concord Group Ltd. agreed to supply natural gas to Aliko Dangote’s planned fertilizer unit in Ethiopia for 25 years in a deal valued at $4.2 billion.

GCL will transport the gas from the Calub gas field in the Ogaden Basin through a dedicated 108-kilometer pipeline to the fertilizer production facility located in Gode, Somali region. The Chinese firm expects to produce 1.33 billion liters of the energy a year by 2029.

“Through strategic cooperation with GCL, we will create an efficient value chain from natural gas extraction to fertilizer production, strengthening Africa’s capacity to secure its own food supply,” the Dangote group said in a statement.

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The $2.5 billion fertilizer project is among a broader $30 billion investment program announced by Ethiopia last year during the inauguration of the Grand Ethiopian Renaissance Dam project.

The plant to produce urea fertilizer has a capacity to produce three million tons and is expected to start operations by 2029.

Temiloluwa, the Online Editor of BusinessDay, is a transformative editorial leader with over 10 years of experience driving digital growth and innovation in media. He leads initiatives in leveraging technology to enhance storytelling and build high-performing teams. Temi is passionate about harnessing tech to inform, engage, and empower communities, with a demonstrated history of creating award-winning solutions that bridge the gap between media and technology.

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