Ethiopia launches study to process natural gas

Ethiopia launches study to process natural gas

Oil & Gas

The Government of Ethiopia has awarded a yearlong study to a United States company to realize conversion of its natural gas deposit into liquid petroleum gas (LPG) and other petrochemicals.

Today the Ministry of Mines, Petroleum and Natural gas of Ethiopia has signed the agreement with GreenComm Technologies. The one yearlong study includes finding ways on how Ethiopia can have a processing plant to convert its natural gases into LPG, airplane fuel, and other petrochemicals, according to the information from The Ministry.



Ethiopia needs $3.6 billion investment to translate the study into a full-fledged active oil processing and refining plant. It is stated that to conduct the study GreenComm Technology of the United States, which covers the 70 million required for the study, will be collaborated with Hyundai Engineering and Construction.

The study takes into consideration the oil and gas reserves and potentials in Ethiopia, including the 8 trillion cubic meters reserve being produced in Calub and Hilala area in Somali Region of Ethiopia. Currently the Chinese company PLY-GCL is extracting the gas in Calub and Hilala areas. In collaboration with the government of Ethiopia, PLY-GCL, is now working to take the gas to Djibouti Port via pipeline set to be installed between the two countries (Ethiopia and Djibouti).