Dangote, China’s GCL Sign $4.2bn Gas Deal to Power Ethiopia Fertiliser Megaproject

Dangote Industries Limited (DIL) has sealed a US$4.2 billion, 25‑year natural gas supply agreement with China’s GCL Group, marking one of the most significant China–Africa industrial partnerships in recent years. The deal will supply natural gas to Dangote Group’s upcoming 3‑million‑tonne-per-year urea fertiliser complex in Gode, Somali Region, Ethiopia, a project expected to transform East Africa’s fertiliser landscape.

The fertiliser plant, valued at US$2.5 billion, is being developed under a 60:40 equity partnership between Dangote Group and Ethiopian Investment Holdings (EIH). Scheduled to begin operations in 2029, it will become the largest modern fertiliser hub in East Africa, meeting Ethiopia’s current urea import demand while supplying neighbouring markets. Analysts say the project will reduce dependence on imports, strengthen regional food security, and support local industrial growth.

The natural gas required for the project will be sourced from the Calub Gas Field in Ethiopia’s Ogaden Basin and transported via a dedicated 108-kilometre pipeline directly to the fertiliser complex. This integrated approach links upstream gas extraction, midstream transport, and downstream fertiliser production, creating a closed-loop “gas-to-fertiliser” value chain.

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Speaking on the deal, Aliko Dangote, President and CEO of Dangote Industries, said: “Africa cannot continue exporting raw materials while importing finished products. Through strategic cooperation with GCL, we will achieve a seamless energy-to-food industrial chain, advancing Africa’s industrial autonomy and food security.”

Zhu Gongshan, Chairman of GCL Group, highlighted the partnership’s broader impact, noting that it will expand energy, chemical, and food security sectors in Ethiopia and advance a mutually beneficial industrial ecosystem. He also commended the Ethiopian government for facilitating the project.

Industry experts note that the project carries multiple strategic benefits. It is expected to create thousands of direct and indirect jobs, stimulate infrastructure development in the Somali Region, and support low-carbon industrialisation by using natural gas as feedstock. The initiative also aligns with broader continental goals of building integrated energy-to-food systems, leveraging local resources, and enhancing industrial value chains.

The partnership is also considered a flagship initiative under China’s Belt and Road framework, demonstrating how industrial cooperation can combine energy development with agricultural advancement to strengthen food security and regional economic resilience.

By integrating Chinese technological expertise with Africa’s resource endowment, the project sets a benchmark for large-scale, resource-driven industrial projects on the continent, positioning East Africa as a hub for modern fertiliser production and signalling a new era of Africa–China industrial collaboration.

Dangote, China’s GCL Sign $4.2bn Gas Deal to Power Ethiopia Fertiliser Megaproject

BREAKING: Several Passengers Injured as Abuja–Kaduna Train Derails After Collisio

Several passengers were injured on Monday after a train travelling along the Abuja–Kaduna rail corridor derailed following a collision, authorities have confirmed.

The incident reportedly occurred near Asham along the busy rail line linking Abuja with Kaduna State, causing panic among passengers onboard the train.

The Managing Director of the Nigerian Railway Corporation (NRC), Kayode Opeifa, confirmed the development, stating that emergency response teams were immediately deployed to the scene following the derailment.

According to preliminary reports, the train derailed after colliding with another object on the track, though officials have yet to disclose full details about the circumstances surrounding the accident.

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Several passengers sustained injuries during the incident and were evacuated to the medical facility at the Idu Railway Station for treatment. Authorities, however, said no fatalities had been recorded as of the time of filing this report.

Eyewitness accounts and videos circulating on social media showed damaged train coaches and railway personnel assessing the situation while stranded passengers gathered near the tracks after disembarking from the train.

The Abuja–Kaduna rail corridor is one of Nigeria’s busiest passenger routes and serves thousands of commuters daily, particularly travellers seeking a safer alternative to road transportation.

Officials of the Nigerian Railway Corporation said investigations have commenced to determine the exact cause of the collision and derailment.

More details are expected as authorities continue rescue operations and assess the extent of the damage.

BREAKING: Several Passengers Injured as Abuja–Kaduna Train Derails After Collision

NAJA to Tinubu: Guarantee crude supply to local refineries to tame petrol prices

The Nigeria Auto Journalists Association (NAJA) has urged President Bola Tinubu to ensure steady supply of crude oil to domestic refineries, particularly the Dangote Refinery, as part of measures to reduce the impact of rising petrol prices.

The association said prioritising crude allocation to local refineries would help Nigeria reduce its exposure to global energy shocks currently driving up fuel costs amid tensions in the Middle East.

The call came days after the Federal Government unveiled a plan to distribute 100,000 Compressed Natural Gas conversion kits nationwide to encourage motorists to switch to alternative fuel and reduce dependence on petrol.

While describing the CNG initiative as a positive step, NAJA stressed that strengthening domestic refining through reliable crude supply remains a more sustainable solution to Nigeria’s fuel pricing challenges.

NAJA Chairman, Theodore Opara, said the government should adopt policies that allow local refineries to obtain crude directly from the Nigerian National Petroleum Company Limited (NNPC), preferably in naira.

According to him, the current arrangement—where the Dangote Refinery imports a large share of its crude—leaves the facility vulnerable to global supply disruptions and price fluctuations.

“Dangote Refinery imports most of its crude, hence it is exposed to the effects of the ongoing crisis in the Middle East,” Opara said. “Direct crude supply from the NNPC will strengthen the country’s long-term energy diversification strategy and reduce exposure to international supply shocks.”

He noted that despite being Africa’s largest crude oil producer, Nigeria still depends heavily on imported refined petroleum products, a situation that continues to expose the economy to volatility in the international oil market.

Opara argued that allowing domestic refineries to source crude locally and transact in naira would not only stabilise the downstream petroleum sector but also reduce pressure on the local currency.

“If Nigeria’s major refineries, including Dangote, receive crude locally and transact in naira, the country will reduce its vulnerability to global market disruptions,” he said.

He added that while the government’s CNG programme could provide relief for motorists in the medium term, ensuring optimal operation of domestic refineries would deliver quicker and more far-reaching benefits for fuel pricing.

“CNG is a good transition policy for transportation, but the backbone of Nigeria’s fuel supply must still come from efficient domestic refining,” he said.

Industry analysts say a coordinated strategy that combines the CNG initiative with strong support for domestic refining could help shield Nigerian consumers from the impact of international oil market volatility.