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

Nigerian industrialist Aliko Dangote, alongside Ethiopia and Djibouti, are collaborating on a $660 million project to build a refined petroleum products pipeline. The Ethiopian Prime Minister's office confirmed this partnership with Reuters. The pipeline will run for 120 kilometers and include storage facilities with a total capacity of around 1.175 million cubic meters in both countries.

Completion is anticipated within 18 months, according to the official. This project is set to be carried out in collaboration between Ethiopian Investment Holdings and Dangote Group. The pipeline will link Damerjog in Djibouti with Dewele in Ethiopia, with storage capacities of approximately 375,000 cubic meters at Damerjog and 800,000 cubic meters at Dewele.

Abiy Ahmed announced this initiative during a visit to Djibouti, where he interacted with Djiboutian President Ismail Omar Guelleh and Dangote himself. The project is aimed at lowering logistics costs and shortening transportation delays along the Ethiopia-Djibouti corridor. It is expected to enhance energy security and bolster supply chain resilience for both nations.

This development is consistent with Dangote Group's expanding investments in Ethiopia, which already include a $4 billion fertiliser pipeline and power plant, as well as a polypropylene packaging facility. Additionally, the Nigerian conglomerate is poised to invest in East Africa further with the construction of a 700,000-barrel-per-day crude oil refinery in Lamu, Kenya, alongside the Dangote Group and the Kenyan government.