DANGOTE TO BUILD $660M PETROLEUM PIPELINE LINKING ETHIOPIA, DJIBOUTI

Nigerian businessman Aliko Dangote, Ethiopia and Djibouti are set to develop a $660m refined petroleum products pipeline linking the two East African countries.

A spokesperson in the office of Ethiopian Prime Minister Abiy Ahmed disclosed the plan to Reuters on Thursday.

The project will involve the construction of a 120-kilometre pipeline and storage facilities with a combined capacity of about 1.175 million cubic metres across Ethiopia and Djibouti.

The pipeline is expected to become operational within 18 months.

Abiy said the project would be developed through a partnership between Ethiopian Investment Holdings and Dangote Group.

The planned pipeline will connect Damerjog in Djibouti with Dewele in Ethiopia, providing a new infrastructure route for the movement and storage of refined petroleum products.

About 375,000 cubic metres of storage capacity will be provided at Damerjog, while Dewele will have approximately 800,000 cubic metres.

According to Abiy, the project is expected to reduce logistics costs and delays along the Ethiopia-Djibouti transport corridor.

The infrastructure is also expected to strengthen energy security and improve the resilience of petroleum supply chains in both countries.

Abiy announced the project during a visit to Djibouti, where he met with Djiboutian President Ismail Omar Guelleh and Dangote.

Dangote Group already has interests in several projects in Ethiopia, including a $4bn fertiliser pipeline and power plant, as well as a polypropylene packaging facility.

The latest project forms part of the Nigerian businessman’s expanding energy interests across East Africa.

Meanwhile, Dangote and the Kenyan government are expected to break ground next week for a proposed 700,000-barrel-per-day crude oil refinery in Lamu.

The planned Kenyan refinery represents another major expansion of Dangote’s investments in the region’s petroleum and energy sector.