The Dangote Group has formalised a $4.2 billion, 25-year Gas Sales Agreement (GSA) with China’s GCL Group (Golden Concord Group Limited) to supply feedstock for its forthcoming fertilizer plant in Ethiopia.
GCL Group will supply natural gas from Ethiopia’s Calub and Hilala gas fields in the Ogaden Basin.
The gas will be delivered through a dedicated 108-kilometre pipeline directly to the facility.
Plant Capacity and Cost: The $2.5 billion urea fertilizer plant, located in Gode, Somali Region, is designed to produce 3 million metric tonnes per annum.
The project is a joint venture, with Dangote Group holding a 60% stake and the state-owned Ethiopian Investment Holdings (EIH) holding 40%.
The plant is scheduled to commence operations in 2029.
Once operational, the complex will be the largest fertilizer production hub in East Africa, aimed at making Ethiopia self-sufficient in urea and supporting regional exports.
This deal, signed in Lagos in March 2026, represents a significant expansion of Dangote’s industrial footprint in Ethiopia, where the group already operates a major cement plant.
Note by Alessandro Bazzoni