Prime Minster Abiy Launches Construction of oil refinery and Fertilizer Plants in Somali Region

Prime Minister Abiy Launches Construction of Oil Refinery and Fertilizer Plants in Somali Region
Gode, October 2, 2025 – Prime Minister Abiy Ahmed has officially announced the commencement of construction for two transformative industrial projects in Ethiopia’s Somali Region: The Gode Oil Refinery and a state-of-the-art Urea Fertilizer Plant.
The announcement came on Thursday through the Prime Minister’s official social media page following his visit to the Somali Region. Prime Minister Abiy described the occasion as a “historic moment for all Ethiopians,” emphasizing the significance of these projects for the nation’s economic and industrial development.
The Gode Oil Refinery, to be built near the Hilal oil field, will extract, refine, and store crude oil. Once completed, it is expected to produce 3.5 million tons of oil annually. The project is being developed by Golden Concord Group (GCL), a Chinese energy conglomerate that has been exploring oil and natural gas in the Somali Region for several years.
Earlier this week, the Ministry of Finance confirmed that GCL had successfully completed the first phase of its operations at the Kalub and Hilal gas fields. GCL Group Chairman Zhou Gongshan met with Finance Minister Ahmed Shide to discuss future investments, including plans for an integrated oil refinery and a steel smelting centre in Dire Dawa.
In parallel, the Prime Minister announced the start of construction for the Gode Urea Fertilizer Plant, a joint venture between Ethiopian Investment Holdings (EIH) and Dangote Group. According to the partnership agreement signed in August, Dangote Group holds a 60% stake in the project, while EIH retains the remaining 40%.
The fertilizer plant will source natural gas from the Kalub gas field through a 108-kilometer pipeline and is projected to produce 3 million tons of urea fertilizer annually. Construction is expected to be completed within three years.
Highlighting the strategic importance of these developments, Prime Minister Abiy stated:
“These projects are more than just symbols of industrial growth. They represent our shared responsibility to seize opportunities, strengthen cooperation, and maintain peace as we build a prosperous Ethiopia.”
The launch of these two landmark projects underscores Ethiopia’s commitment to leveraging its natural resources for sustainable development, industrialization, and job creation. With the Somali Region now positioned as a hub for energy and agro-industrial investment, the initiatives are anticipated to drive regional transformation and bolster the country’s economic resilience.
Jemaludin Syed can be reached at jemaludin.halaburconsult.com