PM Abiy Describes Gas-Oil, Fertilizer Projects as Macroeconomic Stabilizers

Addis Ababa, October 28, 2025 (ENA) - The aggressive development of Ethiopia's massive gas and oil reserves in the Somali Region is key to minimize inflation and contribute to macroeconomic stability, Prime Minister Abiy said.

Addressing the House of People's Representatives today, the premier disclosed that the existence of 21 Trillion Cubic Feet (Tcf) of natural gas has been confirmed by a third party at the specific location where there is operation.

Alongside this is found significant crude oil, he stated, stressing that the focus must shift from regrets to rapid utilization.

According to him, the first phase of crude oil development was completed in just 14 months, and the second round major infrastructure is set for completion within 24 months.

A project that generates 1,000 Megawatts of electricity from this gas is scheduled to be finalized even sooner, boosting national energy security, he elaborated.

Stressing the strategic significance of developing this resource, Abiy explained that  Ethiopia's largest foreign currency expenditures are on imported fuel and fertilizer.

By domesticating the production of both —with the natural gas serving as a feedstock for a new 30 million quintal capacity fertilizer plant being built by Aliko Dangote, and as a transport fuel—the nation stands to save a massive amount of foreign currency. he said.

A core pillar of the strategy is combating inflation, where transportation costs are a major driving factor.

PM Abiy announced plans to transition locally owned vehicles, starting with trucks, to run on natural gas.

This shift is projected to lead to a significant reduction in transportation costs, which will consequently exert downward pressure on the overall inflation rate.

The swift, integrated development of these energy and mineral resources is set to resolve multiple, long-standing macroeconomic and logistical challenges, setting Ethiopia on a definitive path toward structural transformation and enhanced economic resilience, the Prime Minister concluded.