POLY-GCL Company has been exploring petroleum and natural gas in the Ogaden basin since 2013.
The Minister of Mines, Petroleum and Natural Gas, Motuma Mekasa, said 5-6 trillion cubic feet of natural gas was discovered.
According to the Minister, Chairman of POLY-GCL had discussion with Prime Minister Hailemariam Desalegn on how the natural gas could be transported to Djibouti and then to China.
The current agreement to transfer the natural gas to Djibouti is an important step toward accomplishing a significant portion of the project from Ethiopia's side, the minister added.
Some $4.3 billion was allotted for the project, while $360 million has been used for the exploration.
Upon going operational, the project is expected to generate $1.4 billion annually for Ethiopia, and this revenue is expected to grow to up to $7 billion in the coming years, Motuma revealed.
POLY-GCL chairman Barton Yu said his company will strive to complete the project by 2020.