Ethiopia, 2 October 2025 – Ethiopia has launched a package of energy and agricultural projects in its Somali Region worth around $10 billion.
The multi-million projects include a fertilizer plant, oil refinery and expanded natural gas facilities.
In statements posted on social media on Thursday Prime Minister Abiy Ahmed said the projects aim to transform Ethiopia’s energy and agricultural sectors, cut reliance on imports, and bolster food security.
The largest of the projects is the Ogaden Liquefied Natural Gas (LNG) Project, where Abiy inaugurated the first phase with an annual production capacity of 111 million litres. The second phase is expected to add another 1.33 billion litres per year. The gas facility is also expected to generate 1,000 megawatts of electricity, according to officials.
“This plant is not just a gas facility. It is a cornerstone of our food sovereignty efforts by providing essential input for fertilizer production. It also supplies critical resources for our energy and crypto-mining initiatives,” Abiy said on X.
Other projects include the Dangote–Gode Fertilizer Plant, a joint venture with Nigeria’s Dangote Group to produce 3 million tonnes of urea annually, supplied by gas piped 108 km from the Calub fields, and the Gode Oil Refinery, backed by China’s Golden Concord Group Limited (GCL), with a planned capacity of 3.5 million tonnes of crude oil and condensates a year.
Abiy framed the projects as part of a broader push to position Ethiopia as an emerging industrial and energy hub in the Horn of Africa.
“These projects represent more than industrial progress. They embody our shared responsibility to harness opportunities, strengthen cooperation, and promote peace,” he said.
Analysts say the projects could be transformative for Ethiopia’s economy but caution that financial constrains, volatile global energy markets, and the Somali Region’s history of insecurity may pose challenges to their implementation.