POLY-GCL Petroleum LNG Program Included in China-Djibouti President Talk2017-11-26
GCL Subsidiary POLY-GCL Petroleum Group signed an MoU to invest in a natural gas pipeline, an LNG plant and a loading terminal at Damerjog, Djibouti in mid-November. It is right before Djiboutian President Ismail Omar Guelleh's state visit to China from Nov 22 to 25 at the invitation of President Xi Jinping. The program was also mentioned in the two presidents' meet later this month, as part of Belt and Road Initiative efforts from China side.
Regarding the program, the preliminary agreement will be finalized within six months and the groundbreaking should be sometime next year.
China and Djibouti signed three cooperation documents covering such areas as the economy and technology, finance and agriculture on Thursday during Djiboutian President Guelleh's state visit.
The two Presidents agreed to establish a China-Djibouti strategic partnership and deepen cooperation in all areas. Since the establishment of diplomatic relations 38 years ago, China and Djibouti have boosted mutual understanding and respect, supported each other's core interests and major concerns and set an example for China-Africa friendship, Xi said.
China would push forward practical cooperation with Djibouti in such areas as railways, seaports, construction of a liquefied natural gas pipeline, free trade zone and agriculture, Xi said. The mentioned liquefied natural gas pipeline is just the project POLY-GCL is constructing in Africa.
The MoU of the LNG project was signed between Yonis Ali Guedi, Djibouti Minister of Energy and POLY-GCL Chairman Barton Yu in mid-November. Djibouti President Guelleh witnessed the signing ceremony and also met with POLY-GCL team and expressed encouragement and support.
The MoU was a result of several months’ negotiation as it would make sure the biggest energy project in Djibouti history progress well and give strategic contribution to the local economy.
During the President talk, Xi said, China would continue to help Djibouti improve local medical facilities, broaden human resources cooperation and boost people-to-people exchanges. Noting that China attaches great importance to deepening relations with Djibouti, Xi called on joint efforts to push forward collaborating on the Belt and Road Initiative, enhance cooperation in all areas and benefit the people of both sides. The congress has made blueprints for China's long-term development, Xi said, adding that China will continue to be a sincere friend and reliable partner for developing countries.
Djibouti would like to proactively participate in the Belt and Road Initiative and enhance cooperation with China by constructing infrastructure and improving the people's livelihoods, President Guelleh said.
POLY-GCL has entered into lease agreements with Ethiopia for exploration and development of the Ogaden Basin formations, where it expects to find up to 5 tcf of gas and 14 mboe of associated liquids. POLY-GCL expects that production will be high enough in Phase 1 of the development for up to 3 mpta of LNG, eventually rising to 10 mtpa, all of it destined for export at the Damerjog terminal.