Djibouti signs billion dollar gas project deal with Chinese petroleum firm

[Deeq A.]

 

Djibouti has signed a preliminary deal for a $4bn gas project with Chinese firm POLY-GCL Petroleum Group Holdings Ltd. The Horn of Africa nation has signed a memorandum of understanding (MoU) with the Chinese company for a large-scale energy project to be constructed in Damerjog, close to the country’s border with Somalia. The project includes a natural gas pipeline, a liquefication plant and an export terminal to be located in the eastern village. The gas pipeline will transport 12 billion cubic metres of natural gas from Ethiopia to Djibouti per year. the liquefication plant will start with a target of producing 3 million tonnes of liquefied gas per year, starting from 2020, but this target will eventually rise to 10 million tonnes.

POLY-GCL has already finished drilling appraisal wells for gas deposits in southwest Ethiopia – a project linked to the export terminal plans in Djibouti. Djibouti’s energy minister Yonis Ali Guedi says further negotiations over concession agreements for the project will happen within the next six months with construction scheduled to start next year.

 

Source: East Africa Monitor

 

[anoo kale]

How come Djiboutis are dirt poor despite these developments we've bee hearing in their country now for more than a decade ?

 

They should be Dubai rich by now. Does the fat dictator steal everything and park it in Europe ?

[Old_Observer]

This Djibouti is a suvivor. Eritrea would like nothing than total destruction of Djibouti. Now Djibouti is on its 4th port and Eritrea have not found user for their century old two ports.

 

[Mooge]

On 12/29/2017 at 4:09 PM, anoo kale said:

How come Djiboutis are dirt poor despite these developments we've bee hearing in their country now for more than a decade ?

 

They should be Dubai rich by now. Does the fat dictator steal everything and park it in Europe ?

 

niyoow there is no real development there. it is waste land with old decaying buildings. where the money goes? maybe Galbeedi knows better but everyone agrees there is massive corruption in Djibouti and there are business oligarchs there that run everything and everyone else is dirt poor. 

[Suldaanka]

In a different world, the pipe's most logical outlet would have been Berbera as it could save almost 100 km of pipe-line. I.e. it is closer to the Ethiopia's Somali region where the Gas is sourced.

 

Anyway, it is good that the project is going to Djibouti and not Kenya which is another alternative outlet.  

[galbeedi]

I saw these thread but forget somehow to open and read it. 

 

We thank Mr. Deeq for bringing to us these articles from the region.

 

First of all,  this so called natural gas  wells are located in Somali Galbeed. In 2007, the  EThiopian government had tried to establish a project to mine the gas but had abandoned after the Chinese workers were abducted and KIlled by the ONLF. IT was never accepted by the locals and the profits were supposed to enrich only the TPLF crooks. Then the Chinese left for good.

 

Meles never gave up and  after Siilaanyo come to power he took with him to China and told the Chinese that the pipeline for the liquified natural gas will travel from Somali Zone to Berbera. The Chinese listened  but did not take any action. In 2012, when Somalia left the transition period  to Federal government , the Chinese realized that without the Somali government , all these projects are just a  future plans that depends on the stability of the region. Also, with the ethnic issue of Ethiopia flaring up , we should not allow anything that gives oil and gas revenue to the TPLF regime.

 

Even now, this project is many years way, and there will be no shovels in the ground for years to come. On the other hand , those of you who visits Djibouti might feel better when you compare to other Somali regions, but not much has changed in many years. It is the most expensive island in the world, and $1000 dollars will not be enough for a middle class family. State controlled electricity costs between 300-$400 for family, and water is scarce. 

 

Geelle is renting the whole country for foreign military. America alone pays up $70 million a year, add that to the CHinese, Spanish, German, French and the Japanese. THat alone is up half a billion. This country is getting rich on the so called war on terror and the instability of Somalia.

 

Unemployment  is 60%, and no economic activity can take place without the permission of his wife. The people of Djibouti really hate the wife because of her strong tactics of  extortions  from businesses. Muuse Biixi people were also looting Djibouti for many years.

 

All the projects that has been built in Hargeisa is financed by Djibouti banks, Some eve take the money and run away,  including the chairman of the Coca-Cola plant that cost over $20 million dollars. The Geele Family are partners on the the Coca-Cola plant that cost 20 million dollars while partnering with a  man by the name of Ahmed Geelle Arab. This  man who owes  the plant and other major buildings and Hotels in Hargeisa , Ahmed Geele Arab, left Djibouti in the middle of the night and came to Hargeisa. Geelle issues an arrest warrant , but the hargeisa elders are trying to resolve the issue. People said that he defrauded money from Geelle family and transferred his wealth to Dubai and Hargeisa.

 

In a sense Djibouti is a family Business. Sometimes people think that by keeping the people poor and destitute,  they might not be able to challenge his dictatorship which will be twenty years old in 2018. It is a city state with over $600 million budget , yet  there is no cheap water or affordable electricity in a city where the temperature hits 45 degree celsius.

 

I do not buy this deal. First you must extract the gas, build the pipeline and then sell to Djibouti.

 

 

 

[Old_Observer]

Both water and Electricty are close to being solved by importing from Ethiopia. As demand increases Djibouti needs to increase the purchase.

 

Somalilanders and Djiboutians are in fierce competition business wise in Djibouti and in both. Somaliland had business plan and close to implement a port dedicated to cattle and meat exports, Boom Gelle builds a port dedicated for this purpose in Northern Djibouti. Some businessmen including from Somaliland were interested in handling of Potash, Boom Gelle builds a new port dedicated for this purpose in northern Djibouti.

 

The French must have been the most useless empire. They kept djibouti the way they found it and handed it the family from Ethiopia as it was. Everyone seems to talk about employment etc, but the place is not conducive to manufacturing or textiles. Relative to Saudis and others Gelle is doing a better job in terms of developing the place as service.

One should see Saudi Arabia in the east and the border areas with Yemen as compared to Ryad or Jeddah to appreciate what is being done in Djibouti. As per corruption and nepotism, its same as what goes on everywhere. Some who have nuclear power corrupt ith it and some who have camel power corrupt with it. Its with what one does from the left over that matters.

Djibouti is doing better than all the countries around it. That is positive.