Addis Ababa — Ethiopia has formally inaugurated the first phase of the Ogaden Liquefied Natural Gas (LNG) Project in Calub, Somali Regional State, marking a major step in the country’s ambitions to harness its vast natural gas reserves for industrial and economic transformation.
Prime Minister Abiy Ahmed (PhD), who presided over the inauguration on Friday, described the development as “a historic moment for all Ethiopians.” The first phase of the project will produce 111 million liters of LNG annually, with a second phase already under way that will expand capacity to 1.33 billion liters per year.
“This facility is not just a gas project,” Abiy said. “It generates 1,000 megawatts of energy, supplies vital inputs for fertilizer production, and provides resources for our energy and crypto-mining initiatives. It represents food sovereignty, energy security, and industrial progress in one.”
The Ogaden LNG initiative is part of a broader package of mega projects valued at $10 billion, all launched in the Somali Region on the same day. The Prime Minister reaffirmed his government’s commitment to completing these projects, stating, “We have always been committed to finishing what we start.”
In addition to the LNG facility, Abiy laid the foundation stone for two critical plants: a urea fertilizer complex and a crude oil refinery. The fertilizer project will be developed through a $2.5 billion partnership between Ethiopian Investment Holdings (EIH), the government’s sovereign wealth and investment arm, and Nigeria’s Dangote Group. Located in Gode, the plant is expected to produce 3 million tons of fertilizer annually, using natural gas from the Kallu field, transported through a 108-kilometer pipeline.
The refinery, to be constructed by China’s Golden Concord Group, is designed to process crude oil from the Hilal field, with an annual capacity of 3.5 million tons of refined fuel.
According to government officials, the fertilizer and refinery projects will position Ethiopia among the world’s top fertilizer producers, create thousands of jobs, and provide reliable supplies to farmers. The broader Petroleum and Energy package is also expected to ease the country’s import burden and reinforce Ethiopia’s role as an emerging player in regional energy markets.
Analysts view the projects as a strategic turning point for the Somali Region, long seen as a peripheral zone, now poised to become an industrial and energy hub with regional and global significance.
