Prime Minister Abiy Ahmed laid the foundation stone for the Dangote Gode Fertilizer Project and the Gode Oil Refinery during an official ceremony held on Thursday (October 2) in Gode town, southeastern Ethiopia. The event also marked the inauguration of the first phase of the Ogaden Liquefied Natural Gas Project.
The Prime Minister launched the project in the presence of Deputy Prime minister, Temesgen Tiruneh, President of the Somali region, Mustafa Mohammed, President of the Dangote Group, Aliko Dangote, Chairman of Golden Concord Group Limited (GCL Group), Zhu Gongshan, Senior government officials, regional leaders, and international delegates, highlighting the strategic importance of the two projects.
The urea fertilizer plant, developed through a partnership between Ethiopian Investment Holdings and Dangote Group, will be supported by a 108-kilometer pipeline transporting gas from Calub. The facility will also include a polypropylene bagging unit to package the fertilizer on site. The investment is valued at nearly USD 3 billion and is expected to contribute significantly to the national agricultural sector supplying 3 million metric tons urea production annually.
The Gode oil refinery, to be built by China’s Golden Concord Group Limited, on the other hand, is set to process crude oil and condensate sourced from the Hilala oil field. With an annual capacity of 3.5 million tons, the refinery will contribute to reducing dependence on imported fuel products and support national energy security objectives.
Prime Minister Abiy Ahmed also inaugurated the first phase of the Ogaden Liquefied Natural Gas (LNG) Project in Calub, Somali Region, with an annual production capacity of 111 million liters. At the same time, he launched the second phase of the project, which will add a capacity of 1.33 billion liters per year. Beyond gas production, the facility will play a vital role in energy generation, with a production capacity of 1,000 megawatts. All the mega projects inaugurated in the Somali Region, collectively valued at USD 10 billion.
Prime Minister Abiy described the projects as part of a broader responsibility to harness opportunities, strengthen cooperation, and promote peace. He also stated that the launch of the fertilizer and refinery projects represents a strategic step toward improving the country’s global economic position, noting that progress should reflect the sovereign identity and shared aspirations.
In his remarks, Aliko Dangote praised Ethiopia’s reform efforts and economic liberalization, which have opened key sectors to private investment. He said the fertilizer plant is expected to support food security across the region and stated that his company is planning further investments in fertilizer production and other industrial sectors.
Dangote also commended Ethiopia’s energy initiatives, including the Grand Ethiopian Renaissance Dam, and stated that secure energy supplies are essential to long-term industrial development.
The chairperson of Golden Concord Group, Zhu Gongshan, described the refinery project as part of a broader initiative to support Ethiopia’s industrial transformation. He stated that the facility will help reduce the country’s fuel import needs, support its economic goals, and contribute to long-term China-Ethiopia energy cooperation. He affirmed GCL’s continued commitment to the project and to maintaining high construction standards
The foundation laying of these two industrial projects marks a significant step in Ethiopia’s broader efforts to expand domestic production capacity, attract long-term investment, reduce reliance on imports, and advance regional agricultural and energy development.