Ethiopia expects yearly revenue of 1 billion U.S. dollar from gas discovered in the Somali region

[Holac]

ADDIS ABABA, April 11 (Xinhua) -- The Ethiopian government on Wednesday announced its plan to generate close to 1 billion U.S. dollars on annual basis from the recently discovered natural gas.

The 7 to 8 billion cubic trillion feet (TFC) of natural gas in Ethiopia's Somali regional state was recently discovered by the Chinese firm Poly-GCL.

"We are expecting a one billion U.S. dollar revenue from gas export in the first year of operation, anticipating the figure would rise in the subsequent years due to the huge reserve," Ethiopian Minister Mines, Natural Gas and Petroleum, Motuma Mekassa, was quoted by state newspaper on Wednesday as saying.

Mekassa also said that due to the expensive nature of the processing procedures an agreement was reached with the Chinese Poly-GCL to install a pipeline and transport the gas to Ethiopia's neighboring country Djibouti.

According to Mekassa, the Chinese firm is also expected to build a Liquefied Natural Gas (LNG) plant in Djibouti Port so as to process the natural gas and export it to China.

He also revealed an ongoing negotiation between the Chinese Poly-GCL and Djibouti's government in the construction of the pipeline and liquefied gas plant, in which the Ethiopian government is helping the two parties reach the final agreement.

The gas discovery is a great phenomenon which is expected to make a meaningful contribution in sustaining country's rapid economic growth in the years to come, according to Mekassa.

"Ethiopia has witnessed non-oil driven economic growth for over a decade and the discovered gas is essential in diversifying the economy and enlarging natural resources contribution to the country's GDP," he explained.

The energy sector is one of Ethiopia's priorities as the country envisaged to become a light manufacturing hub in Africa and a middle-income economy by 2025.

Officials at the Ethiopian Ministry of Water, Irrigation and Energy (MoWIE) on Monday told Xinhua that Ethiopia is presently working to reach 17,300 MW of energy by the end of 2020, from the current 4,280 MW of energy through energy projects in hydro, wind, geothermal and biomass energy.

[Holac]

The Habesha minister said nothing about using the money for development in the Somali Kilil. 

[maakhiri1]

1 hour ago, Ducale said:

They have to stop calling it... Somali Region. It's ethiopia and those that live there are ethiopians.  The tittle Somali Region, is what kept kililka to fully move forward.  It has negative connotations that psychologically give the wrong impression. It makes every Somali pay lip service to the liberation of "kililka' from the evil ethiopians,  while every part of somalia/somaliland/puntland ONLF are hunted, impresoned, humiliated and handed over to ethiopia. Somali are delusional people. 

 

Great news for ethiopia.  And what's good for ethiopia is good for its neighbours. 

 

 

Is it bothering you Cagdheer are going to be rich? and we know how you hate the D Block?

[cadnaan1]

Any natural resources in the somali region should shared three ways SFG, kilil5 , Ethiopia federal. 

[Ifiye]

3 hours ago, maakhiri1 said:

Is it bothering you Cagdheer are going to be rich? and we know how you hate the D Block?

Far from the truth.   It's more money for the Ethiopian state not only to oppress the locals more but also to use this newly founded wealth to keep neighboring Somalia stateless for a long time to come. 

[Ifiye]

2 hours ago, cadnaan1 said:

Any natural resources in the somali region should shared three ways SFG, kilil5 , Ethiopia federal. 

The only groups Ethiopia will share with this money are the terrorists, clan militias and every other entity it can use effectively to destabilize and encourage the balkanization of Somalia. 

[Old_Observer]

3 hours ago, cadnaan1 said:

Any natural resources in the somali region should shared three ways SFG, kilil5 , Ethiopia federal. 

I don't think this project is going ahead, but if it does the only once who have a share are Ethiopia, Kilil and Djibouti. If you are true Somali Ethnicist what one should promote is to increase the share and benefits of Kilil and nothing else.

To promote irridentism again is to promote an idea that has sos far brought nothing, but failure and suffering to the whole Somali Ethnic. Its also fake and no one is willing to go to the end with it. One simple example is late president Barre signing away irridentism with Kenya during the Ethiopian counter offensive to save his power in Mogadishu. The only reason late Barre did not sign the border with Ethiopia was the minister of Ethiopia took it out of the agreement, not to humiliate the Somali.

If you are an Ethnicist then you would think that Ghelleh, Illey, Bixi, ......SFG are the proper order in their contribution to the dignity of the Somali people.

[Holac]

OO, if you think that the Central government will give even 10% to the Somali Kilil, then you are not being honest. Ethiopia is hungry and whatever money the central government gives back to the Kilil, it will end up in the dark pockets of the ruling elite. 

[Old_Observer]

2 hours ago, Holac said:

OO, if you think that the Central government will give even 10% to the Somali Kilil, then you are not being honest. Ethiopia is hungry and whatever money the central government gives back to the Kilil, it will end up in the dark pockets of the ruling elite. 

Lets be realistic. If the elite are in government, yes everywhere in the world the money has to come to the elite. What is needed is that the elite should have clear programs associated to any money that comes. Example: Money that comes from royalty of oil would be invested on roads and airports transporatation infrustructure.

There is some regulation already with the federal government. Where ever it extracted natural resources has to build roads even if not roads used for the resource extraction and transportation, has to provide clean water if the area did not have previous etc.

Most of federal government is not keen on energy resource extraction unless they can do themselves most of the work. Even gold mines are done with that policy.

10% for sure, but more than that is who bears the cost of security, who bears cost of moving people if needed, who bears cost of infrastructure and very important what will be minimum percentage of local labour, what will be the rate of technology transfer? Example in how many years can Ethiopian (mostly Somali) Engineers and workers to take over the operation completely? So far every infrastructural project has been signed with how many years to take over.

I don't see any oil or gas projects going forward in Ethiopia.

Oil is going down and further down. There is no reason to risk conflict for something that you can buy and use like most of the world. Lack of oil has not affected Ethiopia negatively, but the extraction of oil definetely will affect Ethiopia negatively.

 

Imagine the price Somalia paid for oil that is still in the ground and no hope of getting it out soon. Its simply pointless for these countries to go for oil production. Let it stay in the ground. One day whether its Ethiopia or Somalia will have the capacity to extract it, refine it and use it themselves.

 

 

[Holac]

OO, Abiy visited Tigray Region. What is the story there?

[Old_Observer]

15 minutes ago, Holac said:

OO, Abiy visited Tigray Region. What is the story there?

I think our galbeedi might know more on this one. Can't help it.

I see already the Amhara going bananas for the PM speaking Tigrigna and most importantly first sentence mentioning the sacrifice Tigreans paid for the current achievements in the country and specifically mentioning the parent and children of the martyrs..oh the internet is mostly Amhara cursing and cussing. They are so stupid and ignorant they expected PM to visit them before Jigjiga or Meqelle. Incredible.

I think these folks are stupid. It looks like they were expecting the PM to be against Ethnic federalism...which means going against Somali, Afar and Tigray in that order and all the rest including Oromo.

It looks like he realizes the forces in the country. I knew who ever became PM has to get blessing of Illey. Very few opposition in Ethiopia understood how much it means for the Somali in London to demonstrate with the Ethnic Federal Flag. The Afar making it clear that if the Oromo were going to trade Ethnic federalism for PM position the country will be in trouble.