Xinjiang Xinxin and Danget signed a $4.2 billion natural gas mega deal to jointly build the largest fertilizer base in East Africa.

Recently, the Nigerian Dangote Group signed a 25-year natural gas supply agreement with the Xinjiang Group, with a contract amount of approximately $4.2 billion, to support the construction of a large-scale fertilizer production project in Ethiopia. According to the agreement, the Xinjiang Group will utilize the natural gas resources in 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 state. The project is expected to officially start production in 2029 with an annual capacity of 3 million tons, and once completed, it will become the largest modern fertilizer production base in East Africa. According to the agreement, natural gas will be transported to the fertilizer production base in Gode through a dedicated pipeline approximately 108 kilometers long. The total investment for the project is estimated to be around $2.5 billion, with the Dangote Group holding a 60% stake and Ethiopian Investment Holding holding a 40% stake.