Dangote, Ethiopia and Djibouti Launch $660 Million Fuel Pipeline Project

Nigerian billionaire Aliko Dangote has partnered with the governments of Ethiopia and Djibouti to develop a $660 million petroleum pipeline and storage project linking the two nations.

The infrastructure will feature a 120-kilometer (75-mile) pipeline connecting Djibouti’s Damerjog port to a distribution hub in Dewele, Ethiopia, alongside storage facilities with a capacity of roughly 400 million liters. Operations are slated to commence within 18 months.

Ethiopian Prime Minister Abiy Ahmed stated the pipeline will slash fuel transport times from Djibouti’s port to Addis Ababa from five days to just one. The initial phase will handle key petroleum products, including jet fuel, diesel, and gasoline.

Speaking at the groundbreaking ceremony, Dangote emphasized that the project would bolster Ethiopia’s energy security and create a more resilient fuel supply chain. As a landlocked nation, Ethiopia depends heavily on Djibouti’s port for petroleum imports; the new infrastructure is expected to alleviate pressure on existing transport networks serving the transport, aviation, agriculture, and construction sectors.

Djibouti also stands to gain from heightened port activity, job creation, and increased government revenue. The venture forms part of Dangote’s broader strategy to expand infrastructure and manufacturing operations across Africa. His conglomerate, Dangote Cement, boasts an annual production capacity of approximately 55 million tonnes, while his Nigerian oil refinery currently processes 700,000 barrels of crude per day with plans to double capacity to 1.4 million barrels. The refinery recently listed 4.1 billion ordinary shares on the Nigerian Exchange aiming to raise roughly $1.63 billion. Additionally, the group is scheduled to break ground next week on a proposed 700,000-barrel-per-day crude oil refinery in Lamu, Kenya.

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