China's GCL Group and Jurong Group Sign Contract for Ethiopia LNG Phase II Project

en.Wedoany.com Reported - On October 16, GCL Energy Investment Co., Ltd., a subsidiary of China's GCL Group, and Jurong Group (Holdings) Co., Ltd. formally signed the "Liquefied Natural Gas (LNG) Contracting Construction and Entrusted Processing Contract" in Ethiopia, witnessed by the Ethiopian Ministry of Mines. The two parties will advance the natural gas liquefaction project construction relying on the Calub gas field in the Ogaden Basin, and the Ethiopian Ministry of Mines has proposed to launch the Phase II Stage 1 module construction of the LNG project as soon as possible.

The signing ceremony was held at the Ethiopian Ministry of Mines, with Minister of Mines Alemu Sime Feyisa in attendance. Fu Zhidong, Executive President of the Liquefaction and Refining Business Division of GCL Africa Industrial Group's Ethiopia Region, and Yi Min, Vice President of Jurong Group, signed on behalf of the two parties respectively. Lin Rongsheng, Chairman of Jurong Group, stated that the company will leverage its business capabilities in natural gas liquefaction resource integration, full-cycle project management, and international storage, transportation and trade to participate in the construction of liquefaction facilities, and will work in coordination with GCL Group to improve supporting infrastructure, storage and transportation systems, and international trade channels.

The LNG Phase II project covered by this signing is located in the Ogaden Basin of Ethiopia. On October 2, 2025, GCL Group commissioned the Phase I skid-mounted LNG plant at the Calub camp locally, with a designed daily natural gas processing capacity of 200,000 cubic meters and an annual LNG output of approximately 50,000 tons, while simultaneously launching the construction of the Phase II liquefaction project as well as natural gas power generation and oil refining projects. Phase I LNG products are mainly targeted at industrial parks and end users within Ethiopia, while Phase II is planned to further expand into international export markets.

The two parties previously signed the "Strategic Cooperation Framework Agreement for the Ethiopia LNG Liquefaction Project" on May 18, 2026, establishing a cooperative relationship around the local natural gas liquefaction project construction. The contracting construction and entrusted processing contract signed this time further clarifies the types of cooperative business and extends project cooperation to LNG facility construction and processing services.