China POLY Group and GCL Group have been long term partners and co-founded POLY-GCL Petroleum Group Holdings Limited (hereinafterreferred to as “POLY-GCL”) to develop the oil & gas project in the Federal Democratic Republic of Ethiopia.
Specializes in the integrated business of oil & gas exploration and development, production, storage, pipeline transportation,processing and customer-end distribution and sales, on November 16, 2013, POLY-GCL signed 5 Production Sharing Agreements (PSAs) with the Ministry of Mines of Ethiopia. These agreements have already come into force and are now being implemented.
The contract area is located in the Ogaden Basin of Ethiopia, including 2 development blocks and 8 exploration blocks, with a gross area of approximately 120,000 square kilometers. The project involves oil & gas exploration and development, the construction of a pipeline, and a LNG plant and marine terminal. The oil& gas will be transported through the pipelines from Ethiopia to Djibouti where the LNG liquefaction plant will be constructed.
The LNG production of phase one is expected to reach 3.0 million tons per year, together with 0.3 million tons of condensate oil. The production is due to begin in 2019. In the future, the LNG plant will have the capacity to produce 14 to 15 billion cubic meters of natural gas, equivalent to about 10 million tons of LNG per year.