China’s GCL Group sees Gode Oil Refinery as catalyst for industrialization, power, and digital integration in Ethiopia

Addis Ababa, October 2, 2025 (FMC) — China’s GCL Group today reaffirmed its commitment to Ethiopia’s industrial and energy transformation as the company joined the foundation stone-laying ceremony of the Gode Oil Refinery in Somali Region.

Addressing the historic event, GCL Group Chairman Zhu Gongshan hailed the project as a milestone in China-Ethiopia cooperation and a driver of regional development.

Prime Minister Abiy Ahmed laid the foundation stone for the Gode Oil Refinery, accompanied by Zhu Gongshan, Nigerian industrialist Aliko Dangote, senior Ethiopian government officials, and Chinese and Nigerian delegations.

The refinery, to be constructed by GCL, will have a planned capacity of 3.5 million tons per year, using crude oil and condensate from the Hilala oil field. Its establishment is part of Ethiopia’s broader industrialization agenda, which also includes the $3 billion urea fertilizer plant developed with Dangote Group.

Speaking at the ceremony, Zhu expressed gratitude to the Ethiopian government, the Ministry of Mines, the Somali Regional Government, and the Embassy of China in Ethiopia. “Just two days ago, we flew more than 8,000 kilometers, 15 hours through the night, to return to Addis Ababa, fulfilling the solemn promise I made to Prime Minister Abiy two months ago,” he said, describing the event as a flowering of China-Ethiopia friendship in Gode.

Zhu emphasized that the project is not only a key step under the Belt and Road Initiative and a boost to China-Africa energy cooperation, but also a symbol of Ethiopia’s growing role as a hub for regional industrial development. Despite challenges over the past decade, GCL’s commitment to developing the refinery and the adjacent fertilizer plant has remained steadfast.

He outlined the broader scope of GCL’s investment, including the commissioning of the first-phase skid-mounted liquefaction project, groundbreaking for the second phase of liquefaction, and a crypto-mining project. “These are historic milestones that reflect the deep trust and strong partnership between Ethiopia and GCL,” he said.

Scheduled for completion by the end of 2027, the refinery will establish a complete industrial and supply chain from exploration and extraction to transportation, liquefaction, trade, and application.

Mr. Zhu highlighted its critical role in reducing Ethiopia’s reliance on fuel imports, closing gasoline, diesel, and LPG supply gaps, and supporting Prime Minister Abiy’s vision of energy independence, industrial prosperity, and improved livelihoods.

GCL has pledged to leverage its full industrial chain, technology, talent, and resources to deliver the refinery at the highest standards, efficiently and swiftly. “We will build this refinery into a new highlight, a new model, and a new benchmark of China-Ethiopia energy cooperation, an endeavor that drives Ethiopia’s social and economic development and improves the well-being of its people,” Zhu said.

Looking beyond the refinery, Zhu emphasized GCL’s plans to expand natural gas development, upgrade petroleum refining and chemical production, and integrate energy, power, and digital computing.

He added that the company is committed to strengthening Ethiopia’s green energy supply, accelerating industrialization, and continuously contributing to better living standards and greater happiness for the Ethiopian people.

The foundation stone-laying ceremony and associated projects signal Ethiopia’s commitment to harnessing its natural resources, strengthening industrial cooperation, and positioning the nation as a hub for regional energy and industrial development, it was mentioned.

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