Upcoming & Ongoing Projects

Poly-GCL launches $4 billion Ethiopia gas export project

Source:www.upstreamonline.com  Writer:  Time Distribution:2016-3-17
Hong Kong-based conglomerate Poly-GCL Petroleum has held an official ceremony to launch a $4 billion project that aims to export gas from the Calub and Hilal fields in Ethiopia’s restive Ogaden region to Damerjog port in Djibouti.

However, the project is mired in controversy, with allegations made by an Ogaden independence movement that Ethiopian armed forces have killed people living in the vicinity of the gas fields.

The Ogaden National Liberation Front (ONLF), a movement representing the rights of Somalis in the region, alleges that Poly-GCL personnel operate from army garrisons in the region, and said the company is paying the army to clear land and displace the rural population near the two fields.

ONLF warned this week it will mobilise Somali people both inside and outside Ogaden in order to stop gas being exploited, stressing that it now considers Poly-GCL as a party to the conflict.

“Somali people in Ogaden are not benefiting in any shape or form from this project. Instead, the rural population is being systematically (removed) from grasslands and forced into destitution and internal displacement,” ONLF said.

In addition to upstream facilities in the Ogaden, the project is planned to involve a 700-kilometre pipeline terminating at Damerjog, where a liquefaction plant is due to be built to export liquefied natural gas to China.

A foundation stone-laying ceremony was held in Damerjog last week in the presence of Djibouti’s President Ismael Omar Quelleh.

Construction of the midstream and downstream elements of the scheme are due to begin once legal agreements have been finalised.

The pipeline is designed to transport up to 12 billion cubic metres of gas per annum, while the LNG plant’s capacity is planned at 10 million tonnes per annum.

Calub and Hilal hold combined resources of 133 Bcm of gas and 13.6 million barrels of liquid.

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