Ethiopia, Djibouti and Dangote to build $660 million petroleum pipeline

Ethiopia, Djibouti and Nigerian billionaire Aliko Dangote plan to construct a $660 million refined petroleum pipeline connecting the two countries, a spokesperson in Ethiopian Prime Minister Abiy Ahmed's office said on Thursday.

The project will comprise a 120-km (75-mile) pipeline along with storage capacity of approximately 375,000 cubic metres at Damerjog in Djibouti and 800,000 cubic metres at Dewele in Ethiopia. According to the spokesperson, the infrastructure 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. The Dangote Group is separately already building a $4 billion fertiliser pipeline and power plant, as well as a polypropylene packaging facility, in Ethiopia.

The prime minister said the pipeline aims to reduce logistics costs and delays along the Ethiopia-Djibouti transport corridor. Developers say the infrastructure will strengthen energy security and improve supply chain resilience for both countries, he added.

Abiy is on a visit to Djibouti and made the announcement 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-per-day crude oil refinery in Lamu next week.