Dangote bets on Djibouti-Ethiopia pipeline to cut logistics costs
The project includes storage terminals at both ends. Its cost and timeline remain unknown.
Ethiopia, Djibouti, and the Dangote Group are preparing a refined petroleum pipeline between Damerjog in Djibouti and Dewele at the Ethiopian border. The project aims to reduce transportation costs and delays along Ethiopia’s main maritime corridor, as the country is landlocked.
Ethiopian Prime Minister Abiy Ahmed presented the project on Thursday, September 24, alongside Djiboutian President Ismaïl Omar Guelleh and Aliko Dangote. Ethiopian Investment Holdings and Dangote Group are set to develop the infrastructure.
The announcement follows discussions that began in May regarding a two-phase energy corridor. The first phase focuses on transporting fuels from Djibouti to Ethiopia. A second phase has been proposed to export Ethiopian oil and gas through Djibouti’s ports, although no definitive commitment has been communicated at this stage.
No detailed route, financing plan, or regulatory approval has been made public.
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