Dangote Signs $4.2bn Gas Deal with GCL for Ethiopia Fertiliser Plant

Aliko Dangote has signed a $4.2 billion natural gas supply agreement between Dangote Industries Limited and GCL Group to support a major fertiliser project in Ethiopia.

The agreement, signed in Lagos, secures a 25-year gas supply for the planned facility, ensuring long-term energy availability for operations.

The fertiliser plant, located in Gode, Ethiopia, is a joint venture between Dangote Industries Limited, which holds a 60 per cent stake, and Ethiopian Investment Holdings, with 40 per cent ownership. The project is expected to be completed by 2029.

“Africa’s largest industrial conglomerate, Dangote Industries Limited, has secured a $4.2 billion, 25-year natural gas supply deal with China’s GCL Group to power a major fertilizer expansion project in Ethiopia, highlighting one of the most ambitious China–Africa industrial partnerships in recent years,” a statement said.

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Dangote noted that the initiative aligns with efforts to strengthen Africa’s industrial capacity and reduce dependence on imported finished products.

Chairman of GCL Group, Zhu Gongshan, described the agreement as a new model of China–Africa collaboration, integrating gas supply, pipeline infrastructure, and fertiliser production.

The development comes amid rising global demand for fertiliser, driven in part by supply chain disruptions and geopolitical tensions affecting key export routes.