Dangote, GCL Sign $4.2B Gas Deal for Ethiopia Fertilizer Plant
Analysis based on 25 articles · First reported Mar 16, 2026 · Last updated Mar 23, 2026
The agreement between Dangote Industries and GCL Group for natural gas supply to Ethiopia's fertilizer plant is expected to significantly impact the global fertilizer market by increasing supply and reducing reliance on imports. This move could stabilize fertilizer prices and enhance food security in East Africa, while also boosting industrial activity in Ethiopia.
Dangote Industries Limited (DIL) and China's GCL Group have signed a $4.2 billion, 25-year natural gas supply agreement to power Dangote Group's planned 3-million-tonne-per-year urea fertilizer complex in Gode, Ethiopia. This $2.5 billion project is a joint venture with a 60:40 equity split between Dangote Industries and Ethiopia===Ethiopian Investment Holdings, with operations expected to commence in 2029. The gas will be sourced from Ethiopia's Calub Gas Field and transported via a dedicated pipeline. This initiative aims to meet Ethiopia's domestic urea needs, reduce import dependency, and position Ethiopia as a regional fertilizer hub. Aliko Dangote emphasized the strategic importance of integrating energy and food value chains in Africa, while Zhu Gongshan highlighted the mutual benefits and new template for China-Africa collaboration. The project is expected to create jobs, develop infrastructure, and enhance Africa's role in global fertilizer supply chains.
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