$660m Pipeline Project
Ethiopia, Djibouti and Nigerian industrialist Aliko Dangote are partnering on a $660 million refined petroleum products pipeline designed to improve fuel transportation and energy security along the Horn of Africa corridor. The project was announced during Ethiopian Prime Minister Abiy Ahmed’s visit to Djibouti, where he met Djibouti President Ismaïl Omar Guelleh and Dangote.
120km Connection
The project will establish a 120-kilometre multiproduct pipeline connecting marine and coastal storage facilities at Damerjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia. It will be developed through a partnership between Ethiopian Investment Holdings and the Dangote Group.
Storage Facilities
Storage infrastructure will be constructed at both ends of the pipeline. The facilities are expected to provide combined storage capacity of more than one million cubic metres, with reports putting the total at about 1.175 million cubic metres. This will allow refined petroleum products to be received, stored and transported through an integrated system.
Ethiopia’s Fuel Dependence
The project is particularly important for landlocked Ethiopia, which relies heavily on Djibouti as a major gateway for imports, including petroleum products. The new pipeline is intended to reduce reliance on long-distance road transportation and improve the reliability of fuel supplies reaching the Ethiopian market.
Lower Logistics Costs
Prime Minister Abiy Ahmed said the infrastructure would reduce logistics costs and delays while strengthening energy security. Ethiopian officials have also described the project as part of efforts to improve the efficiency and resilience of the wider Ethiopia-Djibouti trade corridor.
Operations Expected Within 18 Months
The pipeline is expected to become operational within 18 months. Once completed, refined petroleum products arriving through Djibouti can be transferred from coastal storage at Damerjog to inland facilities at Dewele for distribution into Ethiopia.
Dangote Expands African Investments
The project adds to Dangote Group’s expanding investments in African infrastructure and manufacturing. In Ethiopia, the company is also pursuing major industrial projects, including a fertiliser and energy development programme and other manufacturing investments.
Wider Energy Expansion
Dangote is also expanding its presence in East Africa’s energy sector. The group is expected to proceed with plans for a proposed 700,000-barrel-per-day oil refinery in Lamu, Kenya, further extending its involvement in petroleum infrastructure across the continent.
Regional Trade Corridor
The Ethiopia-Djibouti pipeline is being presented by the participating governments and Dangote Group as a broader investment in regional integration. By connecting maritime storage and inland distribution facilities, the project is intended to strengthen fuel supply chains and support economic activity along one of the region’s key trade routes.
Infrastructure Development Continues
Construction of the project follows growing efforts by Ethiopia and Djibouti to strengthen their economic links, while Dangote continues to expand its industrial footprint across Africa. The pipeline is expected to play a role in improving petroleum logistics between the two countries once it becomes operational.
