Ethiopia and Djibouti approve $660 mln Dangote pipeline — Premium Times Nigeria
Ethiopian Prime Minister Abiy Ahmed and Djiboutian President Ismail Omar Guelleh have approved the $660 million Damarjog-Dewele oil terminal and pipeline project, to be implemented by Dangote Group. The project groundbreaking ceremony took place at the Damerjog Industrial Development Free Zone in Djibouti, Premium Times Nigeria reports.
The project involves the construction of a 120-kilometer multiproduct pipeline. It is intended to connect marine and coastal storage facilities in Damerjog, Djibouti, with storage and distribution facilities in Dewele, Ethiopia. Once completed, the pipeline is expected to transport refined petroleum products to Ethiopia, reduce transport delays and improve the reliability of fuel supplies.
Statements by the leaders of Ethiopia and Djibouti
President Guelleh said the investment would contribute to Djibouti's ambition to become a major logistics, industrial and energy hub in Africa. According to him, the project could increase trade volumes and port operations, attract additional investment, and create direct and indirect jobs.
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Abiy Ahmed said the pipeline would provide Ethiopia with a more efficient and reliable channel for the supply of refined petroleum products. According to him, improved access to fuel is expected to support aviation, transport, agriculture, manufacturing and construction. The prime minister also noted that the infrastructure would help reduce losses during long-distance transportation and improve the efficiency of the country's petroleum product distribution system.
Expected effect on logistics
Aliko Dangote, president and chief executive officer of Dangote Industries Limited, said the pipeline is expected to strengthen energy security, improve supply chain efficiency and create economic value for both countries. According to him, Djibouti will receive more port activity, revenue and jobs, while Ethiopia will gain greater energy security and fewer logistical constraints.
Dangote described the Djiboutian corridor as one of the main routes for Ethiopian imports and exports, including petroleum products. The pipeline is expected to reduce dependence on long-distance tanker truck transportation, ease congestion and reduce operational risks in the road transport of fuel. The project is part of the Dangote Group Vision 2030 strategy, under which the group plans to invest $50 billion in Africa's industrial and energy infrastructure.
