NewAge discovers 1.6 trillion cubic feet of gas reserve in Ethiopia

A British energy company, NewAge (African Global Energy Limited) has discovered 1.6 trillion cubic feet of natural gas reserve in the Ogaden basin of Somali Region of Ethiopia.

A private weekly newspaper in Ethiopia has reported that NewAge has made the discovery near the site where the Chinese Poly GCL has started test gas production a year ago. The British energy company currently operates the Ogaden and Adigala blocks in Ethiopia.

"We are now working on the gas commercialization. We are looking at ways how to market the gas," the state Minister told the reporter. The development options in Ogaden are currently under review and include small-scale domestic projects and LNG export with nearby operator Poly GCL, the African Global Energy Ltd. mentioned in its official website.

"The GTL technology has been applied in other countries. Technologically, it has been tested. What Greecom wants from us is the supply of gas for the GTL plant. We have told them to discuss the matter with New Age," the Minister said, as reported by New Business Ethiopia.

One American company named Greencom has also requested the Ministry of Mines and Petroleum to supply it with natural gas. Greencom has proposed to build a gas processing plant that produces various petroleum products from gas. "The company plans to use a Gas-to-Liquid (GTL) technology to change the gas into liquid petroleum products including gasoline and gas oil. The total investment cost is estimated at two billion dollars," the source said.

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