ADDIS ABABA – Ethiopia three years away from producing and exporting natural gas, Ministry of Mines and Petroleum disclosed. According to Dr. Koang Tutlam, State Minister of Mines and Petroleum, there are two natural gas basins that are expected to enter production.
One is the natural gas reserve discovered in Ogaden Basin in Ethio-Somali Regional State by the Chinese Company Poly-GCL. “Works are already underway to install gas pipeline and begin export, which will take three years.” The Chinese company explored and discovered eight to ten trillion cubic feet of natural gas, and various preparation works are already underway to start production.
The plan is to lay down gas pipeline from Ogaden to Djibouti, and start export by 2021 after the various surveys, studies, and agreements are lined up, and the construction work is completed.
As to him, Ethiopia will get as much as one billion USD annually once it starts to export the natural gas, and the revenue will rise up to seven billion USD once the export volume starts to increase in six, seven years. The State Minister further said that another 1.4 trillion cubic feet of natural gas field is discovered by the company ‘NewAge’ in Ogaden region.
The company is currently working to start production (development). In parallel to this, there are also signs of petroleum potential in Ethiopia. Poly-GCL has already initiated study to determine and calculate possible recoverable volumes.
“The aim of the production testing that was started last year was to estimate the amount of petroleum found in the field, and study its economic feasibility.” When that study is completed, they will present a plan on how to move forward, and operation will start as the government gives the goahead, he noted.
“How we are going to develop it, and whether it is meant for export or for local will need to be decide.” d Further, Dr. Koang said that there are identified potential for future oil and gas discoveries in Gambella, Metema near Sudan border, Afar, Tigray and Amhara regional states, and the Ministry is undertaking promotional works to attract companies with the needed capital, and experience to come in and invest.
“We advertise our country’s potential in petroleum exhibitions abroad.” Going forward, the State Minister lamented that promotional work will be the focus of the Ministry, while further attention will be given on ways to benefit people living off the drill sites, and to protect the environment in the process.
Herald March 6/2019
BY ROBEL YOHANNES
