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

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

A spokesman in Ethiopian Prime Minister Abiy Ahmed’s office revealed the development to Reuters on Thursday.

The proposed infrastructure will consist of a 120-kilometre network of pipelines and storage facilities with a combined capacity of approximately 1.175 million cubic meters across Ethiopia and Djibouti.

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

Abiy announced in X that the development will be carried out 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 a storage capacity of around 375,000 cubic meters, while the facility at Dewele will provide around 800,000 cubic meters.

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 increase supply chain resilience for both countries.”

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

This 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 fertilizer pipeline and power plant, as well as a polypropylene packaging facility.

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

The Dangote Group and the Kenyan government are expected to lay the foundation stone next week for the proposed construction of a 700,000 barrel per day crude oil refinery in Lamu.

The oil refinery in Kenya will represent another major investment by Nigerian business groups in the region’s energy sector.