Aliko Dangote’s Dangote Industries Limited has entered into a $4.2 billion, 25-year natural gas supply agreement with China’s GCL Group to support its major fertilizer project in Ethiopia.
The deal, signed in Lagos, is considered one of the largest industrial collaborations between China and Africa. It will supply natural gas to Dangote’s planned 3-million-tonne-per-year urea fertilizer plant in Ethiopia, a $2.5 billion project expected to begin operations in 2029.
The facility, being developed in partnership with Ethiopian Investment Holdings, is projected to become the largest fertilizer production hub in East Africa. Once completed, it is expected to meet Ethiopia’s local demand for urea while also supplying neighbouring countries, reducing dependence on imports and boosting regional agricultural productivity.
Gas for the project will be sourced from the Calub Gas Field in Ethiopia’s Ogaden Basin and transported through a dedicated 108-kilometre pipeline to the plant located in Gode, in the Somali Region.
Dangote said the partnership reflects Africa’s need to move away from exporting raw materials and instead focus on building integrated industries that add value locally. He noted that the project would create a complete value chain from gas extraction to fertilizer production, helping to strengthen food security across the continent.
Chairman of GCL Group, Zhu Gongshan, said the collaboration would expand opportunities in Ethiopia’s energy, chemical, and agricultural sectors while deepening cooperation between Chinese and African businesses.
Analysts say the project could significantly impact East Africa by creating jobs, improving infrastructure, and unlocking the economic potential of the Somali Region. It is also expected to support cleaner industrial processes, as natural gas-based fertilizer production aligns with global low-carbon goals.
The initiative highlights growing China–Africa industrial ties and is seen as a major step toward energy independence, industrial growth, and food security in Ethiopia and the wider region.
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