Djibouti LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Djibouti LNG Terminal is a proposed LNG terminal in Damerjog, Djibouti, Africa.[1]

Location

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Project Details

  • Owner: China POLY Group and GCL Group
  • Location: Damerjog, Djibouti, Africa
  • Coordinates: 11.482124, 43.186891 (approximate)
  • Capacity: 3 mtpa
  • Status: Proposed
  • Type: Export
  • Start Year: 2020[2]

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

Background

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.[1]

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. In November 2013, POLY-GCL signed 5 production sharing agreements (PSAs) with the Ministry of Mines of Ethiopia.[1]

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.[1]

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.[3]

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.[4]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 Construction Start On Djibouti LNG Terminal, March 3, 2016.
  2. Abdourahim Arteh, Djibouti signs preliminary deal with China's POLY-GCL for $4 bln gas project, November 16, 2017.
  3. AFRICOM Chief Warns of Chinese Control at Port of Djibouti, Maritime Executive, March 15, 2018.
  4. Gordon Feller, Port of Djibouti wants to build LNG terminal, Dredging and Port Construction, January 14, 2020.

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