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Ethiopia and Djibouti are turning to the same industrialist who has already bet billions on the region’s energy infrastructure. Ethiopia, Djibouti and Nigerian billionaire Aliko Dangote plan to build a $660 million refined petroleum pipeline connecting the two countries, a Spokesperson in Ethiopian Prime Minister Abiy Ahmed’s office said.
The project will include a 120km pipeline, along with approximately 375,000 cubic metres of storage capacity at Damerjog in Djibouti and 800,000 cubic metres at Dewele in Ethiopia, the Spokesperson told Reuters, adding that it should become operational within 18 months. Abiy said on his X account that the project will be developed through a partnership between Ethiopian Investment Holdings and the Dangote Group, which is separately already building a $4 billion fertiliser pipeline and power plant and a polypropylene packaging facility, in Ethiopia.
Abiy said the project aims to reduce logistics costs and delays along the Ethiopia Djibouti transport corridor, and that developers expect the infrastructure to strengthen energy security and improve supply chain resilience for both countries. He made the announcement while on a visit to Djibouti, alongside its president, Ismail Omar Guelleh and Dangote. In Kenya, Dangote and the government are due to break ground on a new 700,000 barrel a day crude oil refinery in Lamu the following week.
