Dangote, Ethiopia, Djibouti plan $660m fuel pipeline project

Nigerian industrialist Aliko Dangote, Ethiopia and Djibouti are partnering on a $660 million project to construct a refined petroleum products pipeline connecting the two East African countries.

A spokesperson in the office of Ethiopian Prime Minister Abiy Ahmed disclosed the development to Reuters on Thursday.

The proposed infrastructure will comprise a 120-kilometre pipeline and storage facilities with a combined capacity of approximately 1.175 million cubic metres across Ethiopia and Djibouti.

The project is expected to be completed and operational within 18 months, according to the spokesperson.

Abiy announced on X that the development would be undertaken through a partnership between Ethiopian Investment Holdings and Dangote Group.

The pipeline will connect Damerjog in Djibouti with Dewele in Ethiopia.

Damerjog is expected to have about 375,000 cubic metres of storage capacity, while the facility at Dewele will provide approximately 800,000 cubic metres.

According to the report, Abiy said the project “aims to reduce logistics costs and delays along the Ethiopia-Djibouti transport corridor. Developers say the infrastructure will strengthen ⁠energy security and improve supply chain resilience for the two countries.”

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The announcement was made during Abiy’s visit to Djibouti, where he met with Djiboutian President Ismail Omar Guelleh and Dangote.

The proposed pipeline adds to Dangote Group’s growing investment footprint in Ethiopia.

The Nigerian conglomerate is already involved in projects in the country, including a $4 billion fertiliser pipeline and power plant, as well as a polypropylene packaging facility.

Dangote is also expanding his energy interests elsewhere in East Africa.

The Dangote Group and the Kenyan government are expected to break ground next week for a proposed 700,000-barrel-per-day crude oil refinery in Lamu.

The Kenyan refinery would represent another major investment by the Nigerian business group in the region’s energy sector.

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