Chinese company Golden Concord will supply natural gas to a planned fertilizer plant in Ethiopia, operated by Nigeria’s Dangote Group, in a $4.2 billion deal.
The Ethiopian government signed a $2.5 billion agreement with Dangote last August to build urea fertilizer plants that will source gas from the country’s reserves, with Dangote the majority shareholder in a 60/40 split.
The 25-year deal with Golden Concord involves the supply of gas from Ethiopia’s Calub reserves, according to Dangote.
Ethiopia expects the development of the fertilizer complex to boost agricultural production, as conflict and drought in the Horn of Africa region challenge food supplies. For Dangote, the gas deal affirms plans to expand in Ethiopia, where it already operates a unit of its pan-African cement business.