Nigerian billionaire Aliko Dangote has unveiled a new $660 million petroleum infrastructure project that will connect Ethiopia and Djibouti, according to a statement from the office of Ethiopian Prime Minister Abiy Ahmed. The project, developed in partnership with Ethiopian Investment Holdings and the Dangote Group, will feature a 120-kilometre pipeline designed to transport refined petroleum products between the two neighbouring countries. A spokesperson for Prime Minister Abiy's office told Reuters that the pipeline is expected to become operational within 18 months.
Project Details and Storage Facilities
The Ethiopia-Djibouti project will include the pipeline and large storage facilities with a combined capacity of approximately 1.175 million cubic metres, according to a Punch report. The pipeline will stretch from Damerjog in Djibouti to Dewele in Ethiopia. Damerjog is expected to host storage facilities capable of holding about 375,000 cubic metres of petroleum products, while approximately 800,000 cubic metres of storage capacity will be developed at Dewele.
Prime Minister Abiy Ahmed announced the project during a visit to Djibouti alongside Djiboutian President Ismail Omar Guelleh and Dangote. The infrastructure is expected to provide a more efficient route for moving petroleum products into Ethiopia, which relies heavily on Djibouti's ports for international trade.
Strategic Goals: Cutting Costs and Boosting Energy Security
According to Abiy, one of the major objectives of the pipeline is to reduce transportation costs and delays along the crucial Ethiopia-Djibouti trade corridor. Developers also expect the infrastructure to improve fuel supply reliability, strengthen energy security and make the supply chains of both countries more resilient.
The investment adds to the Dangote Group's growing portfolio in Ethiopia. The conglomerate is already involved in other proposed projects in the country, including a fertiliser pipeline and power plant valued at about $4 billion, as well as a polypropylene packaging facility.
Dangote's East African Expansion Continues
The pipeline announcement comes as Dangote accelerates his expansion into East Africa's energy market. Dangote and the Kenyan government are expected to break ground for a massive crude oil refinery in Lamu, Kenya. The proposed refinery is designed to process up to 700,000 barrels of crude oil per day when completed, potentially making it one of Africa's biggest refining facilities. Dangote has estimated the project's value at about $20 billion, while Kenyan officials have previously put the investment at around $17 billion.
The refinery is expected to serve Kenya and potentially neighbouring markets, further expanding Dangote's energy interests beyond Nigeria. Together, the Kenya refinery and the Ethiopia-Djibouti petroleum pipeline signal an ambitious expansion by the Dangote Group into East Africa's energy infrastructure, covering refining, storage and distribution.
Legit.ng previously reported that Dangote Industries is planning a major gas-to-power project in Kenya as the Nigerian conglomerate seeks to deepen its industrial footprint in East Africa. The company is reportedly in discussions with the Kenyan government over the development of a 1,000-megawatt liquefied natural gas (LNG) power plant linked to its proposed refinery project in Lamu.
