Dangote-backed Ethiopia-Djibouti fuel pipeline targets faster energy supply
A major fuel transport project linking Djibouti and Ethiopia has been launched, with Nigerian billionaire Aliko Dangote joining efforts to finance the $660 million infrastructure development aimed at strengthening energy distribution in the Horn of Africa.
The project centres on a 120-kilometre pipeline stretching from Djibouti’s Damerjog Port to Dewele in eastern Ethiopia, where a large fuel distribution and storage facility with a capacity of about 400 million litres will be established. Developers expect the system to become operational within the next 18 months.
At the project’s launch ceremony, Ethiopian Prime Minister Abiy Ahmed said the pipeline would significantly improve fuel delivery to the country by cutting transportation time from Djibouti to Addis Ababa from about five days to just one.
The initial phase of operations will handle petroleum products such as petrol, diesel and jet fuel, providing a more efficient route for supplies entering Ethiopia.
Dangote said the investment would help improve Ethiopia’s energy security by creating a stronger and more dependable fuel supply network. He noted that modern infrastructure remains critical to supporting economic growth and industrial development across the continent.
As a landlocked nation, Ethiopia depends heavily on Djibouti’s ports for access to imported goods, including petroleum products. The new pipeline is expected to ease pressure on existing road-based fuel transportation systems while supporting key sectors such as aviation, agriculture, construction and transport.
Officials also anticipate economic gains for Djibouti through increased activity at its ports, new employment opportunities and higher state revenues generated from the project.
The investment forms part of Dangote’s broader push into large-scale infrastructure and industrial ventures across Africa. His business empire includes one of the continent’s largest cement operations, with annual production capacity estimated at 55 million tonnes.
Dangote’s refinery in Nigeria, which currently processes about 700,000 barrels of crude oil per day, is also pursuing expansion plans that would raise capacity to 1.4 million barrels daily. The refinery recently listed 4.1 billion ordinary shares on the Nigerian stock exchange in a bid to raise approximately $1.63 billion.
The company is also preparing to begin construction of a proposed 700,000-barrel-per-day refinery in Kenya’s coastal town of Lamu, further extending its footprint in Africa’s energy sector.
Source: BBC
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