China established diplomatic relations with Ethiopia on November 24, 1970. In the past years, the bilateral relations have survived in a sound and sustainable manner. In 2013, Ethiopia's Premier Hailemariam Desalegn said to Chinese Premier Li Keqiang during his visit to China that Chinese companies like POLY Technologies Inc. were welcome to invest in the oil and gas projects in the Ogaden Basin in southeastern Ethiopia.
In November 2013, POLY-GCL Petroleum Holdings Limited (“POLY-GCL”), jointly established by China POLY Group and GCL Group, signed oil and gas exploration and development contracts for 10 blocks (with an area up to 117,000 km²) in the Ogaden Basin with the Ethiopian government.
In China, it is urgent to adjust the energy structure and solve the problem of air pollution. Considering the friendship with Ethiopia, the Chinese government strongly supports the gas project cooperation between Ethiopia and POLY-GCL. China will import natural gas from Ethiopia at a fair market price to improve air quality in our country while the project will promote the economic development of Ethiopia and provide more employment opportunities to the local people.