Aliko Dangote is expanding his investments in East Africa with a $660 million petroleum infrastructure project linking Ethiopia and Djibouti. The project, involving the Dangote Group and the governments of Ethiopia and Djibouti, will include a 120-kilometer pipeline for transporting refined petroleum products between the two countries.
A spokesperson for Ethiopian Prime Minister Abiy Ahmed’s said that the pipeline could become operational within 18 months.
The investment comes as Dangote also prepares to pursue another major energy project in East Africa, a proposed $20 billion crude oil refinery in Kenya.
The Ethiopia-Djibouti project will include the 120-kilometer pipeline and storage facilities with a combined capacity of about 1.175 million cubic meters, according to a Punch report.
The pipeline will run from Damerjog in Djibouti to Dewele in Ethiopia. Damerjog will have a storage capacity of about 375,000 cubic meters, while Dewele will accommodate around 800,000 cubic meters of petroleum products.
Ethiopian Prime Minister Abiy Ahmed said Ethiopian Investment Holdings and Dangote Group will develop the project through a partnership.
The pipeline will provide Ethiopia with a dedicated route for moving petroleum products, as the country depends heavily on Djibouti’s ports for international trade. Abiy said the project aims to cut transportation costs and reduce delays along the Ethiopia-Djibouti trade corridor.
The infrastructure is also expected to improve fuel supply reliability, strengthen energy security, and reduce disruptions across the petroleum supply chain in both countries.
Dangote’s proposed Kenyan refinery would have a processing capacity of up to 700,000 barrels of crude oil per day once completed, potentially placing it among Africa’s largest refineries.
source: www.legit.ng
African Energy Council