Ethiopia set to review Gas-by-Rail agreement as promoters outline 40-country rail energy corridor

Ethiopia is expected to sign a Host Country Collaborative Agreement on December 8 with Insight Dynamic Resources (IDR), according to materials circulated by the project’s promoters for what they call the Gas-by-Rail Economic Corridor Initiative (GBR-ECI).

IDR, a private project development company, describes the GBR-ECI initiative as a long-term concept to move natural gas by rail across Sub-Saharan Africa through a “virtual pipeline” system. The scheme could eventually involve 73,500 km of freight rail infrastructure spanning up to 40 African countries.

The aim is to replace widespread dependence on woodfuel and charcoal with rail-delivered gas, a shift they say could reduce greenhouse gas emissions and woodfuel consumption by as much as 75%.

IDR has further outlined an industrial development vision centred on an “Ethio-Cluster” that would produce green hydrogen, green iron and up to 5mn tonnes of green steel annually by 2030. The company has cited the potential technical involvement of Germany’s SMS group (private) and Wabtec Corporation (NYSE:WAB).

Musa Ibrahim Kuchi, founder of the initiative, said in materials circulated by the project team that “Africa cannot industrialise on charcoal and firewood,” framing the gas-by-rail concept as a response to chronic energy deficits.

Project representatives also refer to plans for a high-level summit in Addis Ababa in 2026 at which “40 heads of state” could discuss cross-border frameworks for a continental energy corridor.

Given the unprecedented scale of the proposal, extensive due diligence work will be required before the concept can progress, including verified engineering studies, clarity on financing sources, environmental assessments, intergovernmental agreements, regulatory standards for transporting densified gas by rail, and an independent appraisal of commercial viability.