Djibouti FLNG Terminal

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Djibouti FLNG Terminal, also known as Ethiopia-Djibouti LNG Terminal, is an LNG export terminal in Djibouti with units that are cancelled (confirmed).

Location

Table 1: Location details

Name Location Coordinates (WGS 84)
T1 Damerjog, Djibouti[1] 11.482124, 43.186891 (approximate)
T2 Damerjog, Djibouti[1] 11.482124, 43.186891 (approximate)
T3 Damerjog, Djibouti[1] 11.482124, 43.186891 (approximate)

The map below shows the approximate location of the terminal:

Loading map...

Project Details

Table 2: Infrastructure details

mtpa = million tonnes per year
Name Facility type Status Capacity Total terminal capacity Offshore Associated infrastructure
T1 export[1] cancelled (confirmed)[2] 3 mtpa[1] 10.0 mtpa False Ogaden Basin[1]
T2 export[3] cancelled (confirmed)[2] 3 mtpa[4] 10.0 mtpa False Ogaden Basin[1]
T3 export[3] cancelled (confirmed)[2] 4 mtpa[4] 10.0 mtpa False Ogaden Basin[1]

Table 3: Cost

Name Facility type Cost Total known terminal costs
T1 export[1] US$2,900,000,000[4] US$4,000,000,000
T2 export[3] US$550,000,000[4] US$4,000,000,000
T3 export[3] US$550,000,000[4] US$4,000,000,000

Financing

No financing data available.

Table 4: Project timeline

FID = Final Investment Decision, used by some developers to indicate a project will move forward
Name Facility type Status Proposal year FID year Construction year Operating year Inactive year
T1 export[1] cancelled (confirmed)[2] – – 2016[1] 2025[1][4] 2025 (cancelled)[5]
T2 export[3] cancelled (confirmed)[2] – – 2016[1] 2025[1][4] 2025 (cancelled)[5]
T3 export[3] cancelled (confirmed)[2] – – 2016[1] 2025[1][4] 2025 (cancelled)[5]

Ownership

Table 5: Ownership

Name Facility type Status Owners Parent companies Operator
T1 export[1] cancelled (confirmed)[2] GCL Technology Holdings Ltd [100%][1] GCL Technology Holdings Ltd [100.0%] –
T2 export[3] cancelled (confirmed)[2] GCL Technology Holdings Ltd [100%][1] GCL Technology Holdings Ltd [100.0%] –
T3 export[3] cancelled (confirmed)[2] GCL Technology Holdings Ltd [100%][1] GCL Technology Holdings Ltd [100.0%] –

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.[6]

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.[6]

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.[6]

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.[6]

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.[7]

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.[8]

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.[9] 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.[10]

Articles and Resources

Additional data

To access additional data, including an interactive map of LNG terminals, a downloadable dataset, and summary data, please visit the Global Gas Infrastructure Tracker on the Global Energy Monitor website.

References

  1. ↑ 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 https://www.offshore-energy.biz/construction-starts-on-djibouti-lng-terminal/. {{cite web}}: Missing or empty |title= (help)
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 https://www.radiodalsan.com/ethiopia-abandons-ambitious-ogaden-gas-export-project-citing-funding-delays-and-strategic-shift/. {{cite web}}: Missing or empty |title= (help)
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 https://www.lngworldnews.com/construction-starts-on-djibouti-lng-terminal/. {{cite web}}: Missing or empty |title= (help)
  4. ↑ 4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 (PDF) https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0718/2022071801092.pdf. {{cite web}}: Missing or empty |title= (help)
  5. ↑ 5.0 5.1 5.2 https://www.radiodalsan.com/ethiopia-abandons-ambitious-ogaden-gas-export-project-citing-funding-delays-and-strategic-shift/; https://www.radiodalsan.com/ethiopia-abandons-ambitious-ogaden-gas-export-project-citing-funding-delays-and-strategic-shift/ https://www.energyvoice.com/oilandgas/africa/lng-africa/446041/ethiopia-poly-gcl-gas/; https://www.radiodalsan.com/ethiopia-abandons-ambitious-ogaden-gas-export-project-citing-funding-delays-and-strategic-shift/; https://www.radiodalsan.com/ethiopia-abandons-ambitious-ogaden-gas-export-project-citing-funding-delays-and-strategic-shift/. {{cite web}}: Check |url= value (help); Missing or empty |title= (help)
  6. ↑ 6.0 6.1 6.2 6.3 News, LNG World (2016-03-03). "Construction starts on Djibouti LNG terminal". Offshore Energy. Retrieved 2025-06-24. {{cite news}}: |last= has generic name (help)
  7. ↑ AFRICOM Chief Warns of Chinese Control at Port of Djibouti, Maritime Executive, March 15, 2018.
  8. ↑ Gordon Feller, Port of Djibouti wants to build LNG terminal, Dredging and Port Construction, January 14, 2020.
  9. ↑ "MEMORANDUM OF UNDERSTANDING IN RELATION TO THE POSSIBLE INVESTMENT IN THE ETHIOPIA-DJIBOUTI NATURAL GAS PROJECT AND PROVISION OF THE MANAGEMENT SERVICES" (PDF). hkexnews.hk. 2022-07-18. Retrieved 2025-06-23. {{cite web}}: line feed character in |title= at position 43 (help)CS1 maint: url-status (link)
  10. ↑ "Ethiopia Abandons Ambitious Ogaden Gas Export Project, Citing Funding Delays and Strategic Shift". Radio Dalsan. 2025-06-29. Retrieved 2025-07-09.