Construction starts on Djibouti LNG terminal

A groundbreaking ceremony held on Thursday in Damerjog, Djibouti marked the start of construction of a liquefied natural gas export terminal, the Djibouti Ports & Free Zones Authority (DPFZA) said.

The facility will be developed by POLY-GCL Petroleum Group, a joint venture between China POLY Group and GCL Group.

According to POLY-GCL’s website, 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, POLY-GCL said.

Feed gas will be delivered via an 803 km pipeline transporting gas from Ethiopia’s Ogaden Basin to Djibouti, with a planned phase one throughput of 4 bcm per year.

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

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 said it has signed a memorandum of understanding for the transport of LNG with China LNG Shipping Company.

LNG World News Staff