Ethiopia, Djibouti and Nigerian billionaire Aliko Dangote have announced plans to build a $660 million petroleum pipeline linking the two East African countries, in a major infrastructure project aimed at improving regional fuel supplies and reducing transport costs.
A spokesperson for Ethiopian Prime Minister Abiy Ahmed said on Thursday that the project would include a 120-kilometre pipeline connecting Ethiopia and Djibouti, alongside extensive fuel storage facilities.
The development will provide approximately 375,000 cubic metres of storage capacity at Damerjog in Djibouti and a further 800,000 cubic metres at Dewele in Ethiopia.
The pipeline is expected to become operational within 18 months, according to the spokesperson.
Abiy announced the agreement during a visit to Djibouti, where he appeared alongside President Ismail Omar Guelleh and Dangote.
The Ethiopian leader said the project would be developed through a partnership between Ethiopian Investment Holdings and the Dangote Group.
The investment is intended to reduce logistics costs and transport delays along the Ethiopia-Djibouti corridor, a vital trade route for landlocked Ethiopia.
Abiy said the infrastructure would also strengthen energy security and improve supply chain resilience in both countries.
The agreement marks another major investment by Dangote in Ethiopia, where his conglomerate is already pursuing a $4 billion fertiliser project alongside energy and industrial infrastructure developments.
The group is also involved in plans for a power plant and a polypropylene packaging facility in the country.
Separately, Dangote and the Kenyan government are expected to break ground next week on a new crude oil refinery in Lamu, with a planned processing capacity of 700,000 barrels per day.
