Nigeria's Dangote Group and Xinxiang Group sign a $4.2 billion natural gas supply agreement.

The Dangote Group of Nigeria and the Xinjiang Group have signed a 25-year natural gas supply agreement with a contract amount of approximately $4.2 billion to support a large-scale fertilizer production project in Ethiopia. Under the agreement, the Xinjiang Group will utilize natural gas resources from the Calub gas field in the Ogaden Basin to provide energy security for the urea fertilizer integrated production base planned by the Dangote Group in the Somali region. The project is expected to officially start production in 2029 with an annual capacity of 3 million tons, and will become the largest modern fertilizer production base in East Africa once completed. According to the agreement, natural gas will be transported to the fertilizer production base in Gode through a dedicated pipeline with a total length of approximately 108 kilometers. The total investment for the project is estimated to be around $2.5 billion, with the Dangote Group holding a 60% stake and the Ethiopian Investment Holding holding a 40% stake.