Djibouti FLNG Terminal

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Djibouti FLNG Terminal was a proposed floating liquefied natural gas (FLNG) terminal in Damerjog, Djibouti, Africa. It was cancelled in 2025.

Location

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Project Details

Project Details, Train 1

• Owner: Poly-GCL Petroleum Ltd
• Parent: China POLY Group, Golden Concord Group
• Location: Damerjog, Djibouti, Africa
• Coordinates: 11.482124, 43.186891 (approximate)
• Type: Export
• Capacity: 3 mtpa
• Location: Damerjog, Djibouti, Africa
• Status: Cancelled
• Start Year: 2025
  • Formerly 2020
  • Formerly 2018
• Cost: USD$2.9 billion

Project Details, Train 2

• Owner: Poly-GCL Petroleum Ltd
• Parent: China POLY Group, Golden Concord Group
• Location: Damerjog, Djibouti, Africa
• Coordinates: 11.482124, 43.186891 (approximate)
• Type: Export
• Capacity: 3 mtpa
• Status: Cancelled
• Start Year: 2025
  • Formerly 2020
  • Formerly 2018

Project Details, Train 3

• Owner: Poly-GCL Petroleum Ltd
• Parent: China POLY Group, Golden Concord Group
• Location: Damerjog, Djibouti, Africa
• Coordinates: 11.482124, 43.186891 (approximate)
• Type: Export
• Capacity: 4 mtpa
• Status: Cancelled
• Start Year: 2025
  • Formerly 2020
  • Formerly 2018

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

In 2013, POLY-GCL Petroleum Group, a joint venture between China POLY Group and GCL Group, signed 5 production sharing agreements with the Ministry of Mines of Ethiopia.

In 2016, construction was started in Damerjog, Djibouti for a liquefied natural gas export terminal. The facility will be developed by POLY-GCL Petroleum Group, a joint venture between China POLY Group and GCL Group. The project’s estimated cost is at $4 billion with first LNG export expected by mid-to-late 2018.

The facility will have one liquefaction train in the first phase, allowing for the production of 3 million tons of LNG per year, with an option to be expanded to 10 mtpa in the future. Feed gas will be delivered via an 803 km pipeline transporting gas from Ethiopia’s Ogaden Basin to Djibouti.

The proposed LNG terminal will be able to receive liquefied natural gas carrier with the capacity of up to 267,000 cbm and will ship the chilled fuel to the world’s largest energy consumer, China. POLY-GCL has signed a memorandum of understanding for the transport of LNG with China LNG Shipping Company.

The arrival of Chinese interests in Djibouti got the attention of the U.S. military. In March of 2018, at a hearing of the Senate Armed Services Committee, AFRICOM commander Gen. Thomas Waldhauser (USMC) said that "we are carefully monitoring Chinese encroachment and emergent military presence [in Djibouti]". He told the committee that American military forces in the country depend upon DCT for their supply chain.

In December 2019, a pipeline agreement was signed between Ethiopian and Chinese partners, a major step forward in Djibouti’s efforts to develop the long-delayed export terminal.

In July 2022, GNE Hong Kong announced its intention to invest in the Ethiopia-Djibouti Natural Gas Project, which includes the the exploration and development of natural gas reserves in Ethiopia, the 750km Ethiopia–Djibouti Gas Pipeline, and the near shore liquefaction plant. In this memo, it stated that POLY-GCL were contemplating funding options and expected commercial production to commence in mid-2025. Two months later, in September 2022, Ethiopia terminated Poly-GCL's license to access its gas resources due to the company's lack of progress.

In June 2025, Ethiopia cancelled its plan to extract and export natural gas from the Ogaden Basin, officially terminating the LNG project. The decision was made as a result of issues securing financing in addition to slow implementation timelines.