ADDIS ABABA, Oct. 3 (AGCNewsNet) - Ethiopian Prime Minister, Abiy Ahmed, on Thursday launched the construction of a $2.5 billion oil refinery in the Somali Regional State, a project expected to produce 3.5 million tonnes of refined fuel annually, according to government officials.

The Gode oil refinery will be developed by China's Golden Concord Group Limited in partnership with the Ethiopian government, according to the prime minister's office.

Prime Minister Abiy laid the foundation stone for two landmark industrial projects in Ethiopia's Somali Region, including the multi-billion-dollar oil refinery and a urea fertilizer plant, according to official statements.

"This will turn our long-held dream of extracting oil into reality," Prime Minister Abiy said at the groundbreaking ceremony, according to state media reports.

The facility will be constructed in two phases, with the first phase expected to be completed within 24 months, according to Billene Seyoum, the prime minister's spokeswoman.

The refinery is slated to start operations in less than a month, according to earlier government announcements. The project represents a significant step toward Ethiopia's energy independence and industrial development goals.

In addition to the oil refinery, the government has finalized a new fertilizer production deal, with work on the plant set to begin soon, according to officials.

The Gode refinery project is part of Ethiopia's broader economic transformation agenda, which includes major infrastructure and industrial initiatives across the country, according to government development plans.

Ethiopia, Africa's second-most populous nation, has been working to develop its natural resources and reduce dependence on imported petroleum products, which have placed significant strain on foreign exchange reserves.

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