Ethiopia has cancelled a contract with China’s Poly-GCL, which has been active there for almost a decade trying to commercialise the 4 trillion cubic feet of gas held in Calub and Hilala fields in the remote Ogaden region.

The project has involved plans to build a 767-kilometre pipeline to Djibouti port on the Red Sea, from where the gas would be converted into liquefied natural gas for export via ship.

Development activities appear to have been limited for the past four years, when production tests were carried out on the liquids held in the two fields.