Nigerian billionaire and Chairman of Dangote Group, Aliko Dangote, is set to partner with Ethiopia and Djibouti on a $660 million refined petroleum products pipeline connecting the two East African countries.
A spokesperson in the office of Ethiopian Prime Minister Abiy Ahmed disclosed the development to Reuters on Thursday.
The project will comprise a 120-kilometre pipeline and storage facilities with a combined capacity of approximately 1.175 million cubic metres across Ethiopia and Djibouti.
According to the spokesperson, the pipeline is expected to become operational within 18 months.
Prime Minister Abiy said the project would be developed through a partnership between Ethiopian Investment Holdings and Dangote Group.
The pipeline will run between Damerjog in Djibouti and Dewele in Ethiopia. About 375,000 cubic metres of storage capacity will be provided at Damerjog, while Dewele will accommodate approximately 800,000 cubic metres.
The project is expected to reduce logistics costs and delays along the Ethiopia-Djibouti transport corridor while strengthening energy security and improving supply-chain resilience in both countries.
Abiy announced the project during a visit to Djibouti, where he was accompanied
Djiboutian President Ismail Omar Guelleh and Dangote.
Dangote Group already has major business interests in Ethiopia, including a $4 billion fertiliser project and power plant, as well as a polypropylene packaging facility.
Meanwhile, Dangote and the Kenyan government are expected to break ground next week on a proposed 700,000-barrel-per-day crude oil refinery in Lamu.
The planned refinery represents another expansion of Dangote Group’s growing energy interests across East Africa.
