Nigerian billionaire Aliko Dangote, Ethiopia and Djibouti are set to develop a $660 million refined petroleum products pipeline linking the two East African countries.
A spokesperson for Ethiopian Prime Minister Abiy Ahmed’s office told Reuters on Thursday that the 120-kilometer pipeline will connect Damerjog in Djibouti to Dewele in Ethiopia and is expected to become operational within 18 months.
The project will include storage facilities with a combined capacity of about 1.175 million cubic meters, 375,000 cubic meters at Damerjog and 800,000 cubic meters at Dewele.
Abiy said the project will be developed through a partnership between Ethiopian Investment Holdings and Dangote Group. He said the pipeline is expected to reduce fuel transportation costs and delays along the Ethiopia-Djibouti corridor while strengthening energy security and supply-chain resilience.
Ethiopian state media reported that the pipeline could cut the journey for fuel transported to Addis Ababa from about five days by road to roughly one day.
The announcement was made during Abiy’s visit to Djibouti alongside President Ismail Omar Guelleh and Dangote.
The project adds to Dangote Group’s growing investments in East Africa. The group is already involved in a $4 billion fertilizer project and power plant in Ethiopia. Dangote is also preparing to begin work on a proposed 700,000-barrel-per-day refinery in Kenya.
Leave feedback about this