October 03, 2025 [Rigzone]- Ethiopia broke ground on its first oil refinery, a $2.5-billion project that the government said is being built by Golden Concord Group Ltd. of China and with capacity to produce 3.5 million tons of fuel a year.

The facility will be constructed in two phases, with the first phase expected to be completed within 24 months, according to Billene Seyoum, Prime Minister Abiy Ahmed’s spokeswoman.

The Gode Oil Refinery will tap crude oil and condensate from the Hilala fields located in Ethiopia’s eastern Somali region, Abiy said in a post on X. The project adds to a separate $2.5 billion fertilizer plant that the state-owned Ethiopian Investment Holdings is constructing in partnership with Dangote Group, which will be fueled by gas from the nearby Calub fields.

Abiy also inaugurated the first phase of the Ogaden liquefied natural gas project with an annual production capacity of 111 million liters, and an expected second phase for an additional 1.33 billion liters. The facility will contribute 1,000 megawatts of electricity, he said.

“All the mega projects we inaugurated today in the Somali Region, collectively valued at $10 billion including associated infrastructure, will be carried through to completion,” he said.

The Gode refinery is part of a broader $30 billion investment program announced last month during the inauguration of the $4.8 billion Grand Ethiopian Renaissance Dam project. The program includes a $10 billion airport and a nuclear-power plant to be developed with Russia.