“All mega projects inaugurated in the Somali Region today, collectively valued at USD 10 billion”
Prime Minister Abiy Ahmed (PhD) today 2 October 2025 announced the inauguration of the first phase of the Ogaden Liquified Natural Gas (LNG) Project in Calub, Somali Regional State, with an annual production capacity of 111 million liters.
“At the same time, we launch the second phase, which will add a capacity of 1.33 billion liters per year,” the Prime Minister stated on his official social media accounts.
According to Abiy, the LNG facility goes beyond gas production. “This facility also contributes significantly to energy generation, with a production capacity of 1,000 megawatts. Importantly, the plant is not just a gas facility. It serves as a cornerstone of our food sovereignty efforts by providing essential input for fertilizer production. It also supplies critical resources for our energy and crypto-mining initiatives,” he said.
The Prime Minister added that all mega projects inaugurated in the Somali Region today, collectively valued at #USD 10 billion including associated infrastructure, “will be carried through to completion, as we have always been committed to finishing what we start.”
Earlier in the day, Abiy also laid the foundation stone for the construction of a urea fertilizer factory and a fuel refinery in the region, which he described as a “historic moment for all Ethiopians.”
In August, Ethiopian Investment Holdings (EIH), the government’s strategic investment arm, and Nigeria’s Dangote Group signed a shareholders’ agreement to develop and operate a $2.5 billion urea fertilizer production complex in Gode, Somali Regional State.
The fertilizer plant will be developed through the EIH–Dangote partnership, while the Golden Concord Group has been contracted to construct the fuel refinery.
According to the Prime Minister, the refinery is designed to process crude oil from the Hilal oil field with an annual capacity of 3.5 million tons of refined fuel. The fertilizer complex will produce 3 million tons annually, using natural gas from Kallu and a 108-kilometer pipeline to transport inputs.
The government says the two projects are expected to position Ethiopia among the world’s leading fertilizer producers, while also creating thousands of jobs and ensuring reliable supplies for farmers.
Source: Addis Standard
