Dangote, Ethiopia, Djibouti plan $660m petroleum pipeline

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

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

The project will involve the construction of a 120-kilometre pipeline and storage facilities with a combined capacity of about 1.175 million cubic metres across Djibouti and Ethiopia.

According to the spokesperson, the pipeline is expected to be operational within 18 months.

Abiy announced the project on X, saying it would be developed through a partnership between Ethiopian Investment Holdings and Dangote Group.

The pipeline will connect Damerjog in Djibouti with Dewele in Ethiopia. The Djibouti terminal will have about 375,000 cubic metres of storage capacity, while the Ethiopian facility will accommodate approximately 800,000 cubic metres.

The Ethiopian prime minister said the project was designed to reduce logistics costs and delays along the Ethiopia-Djibouti transport corridor.

The developers also expect the infrastructure to strengthen energy security and improve the resilience of petroleum supply chains in both countries.

Abiy announced the project during a visit to Djibouti, where he was accompanied by Djiboutian President Ismail Omar Guelleh and Dangote.

Dangote Group already has investments in Ethiopia, including a $4 billion fertiliser pipeline and power plant, as well as a polypropylene packaging facility.

The planned pipeline adds to Dangote’s expanding energy interests across East Africa.

The Nigerian businessman and the Kenyan government are also expected to break ground next week on a proposed 700,000-barrel-per-day crude oil refinery in Lamu, further expanding his energy investments in the region.