The Chinese company Poly-CGL has signed a Memorandum of Understanding (MoU) to invest US$4bn in several gas projects located in Damerjog (Djibouti), of which a 12 bcm/year natural gas pipeline, a 10 Mt/year liquefaction plant and an export terminal.
The 700-km pipeline has been under construction since March 2016 and will run from Ethiopia to Djibouti. Its cost is estimated at US$3bn, of which US$2bn for the Djibouti part and US$1bn for the Ethiopian part. The pipeline is also expected to supply a gas-fired power plant in Damerjog to meet the electricity needs of the proposed liquefaction plant. The US$1bn Djibouti LNG project is currently under construction and the first phase of 3 Mt/year should be operational in 2019. LNG will be then exported to China.
Poly-GCL is a joint venture (JV) between the state-owned company China Poly Group Corporation and the privately owned Hong Kong-based Golden Concord Group.
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