Dangote to build $660m petroleum pipeline linking Ethiopia, Djibouti

Nigerian billionaire Aliko Dangote plans to construct a $660 million refined petroleum products pipeline connecting Ethiopia and Djibouti. Ethiopian Prime Minister Abiy Ahmed's office confirmed this to Reuters on Thursday. The pipeline will comprise a 120-kilometre stretch, along with storage facilities totaling 1.175 million cubic metres in both nations. The project, to be completed within 18 months, will be a joint venture between Ethiopian Investment Holdings and Dangote Group.

The pipeline will commence in Damerjog, Djibouti, where approximately 375,000 cubic metres of storage capacity will be available. On the Ethiopian side, Dewele will house around 800,000 cubic metres of storage. The initiative aims to curb logistics expenses and delays along the Ethiopia-Djibouti transport corridor, enhancing energy security and supply chain resilience.

Abiy Ahmed disclosed the project's announcement during a visit to Djibouti, alongside Djiboutian President Ismail Omar Guelleh and Dangote Group's CEO. Dangote Group is already engaged in multiple projects in Ethiopia, including a $4 billion fertiliser pipeline and power plant, as well as a polypropylene packaging facility.

In addition, Dangote and the Kenyan government are set to commence work soon on a new 700,000-barrel-per-day crude oil refinery in Lamu. This refinery project represents another expansion of Dangote's energy ventures in East Africa.