Dangote Group, Ethiopia and Djibouti have launched a $660 million refined petroleum products pipeline project aimed at improving fuel transportation, reducing logistics costs and strengthening energy security along one of East Africa’s most important trade corridors.
The project will involve the construction of a 120-kilometre multiproduct pipeline connecting marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution infrastructure at Dewele in Ethiopia.
The project was announced in the presence of Ethiopian Prime Minister Abiy Ahmed, Djibouti President Ismaïl Omar Guelleh and Dangote Group President Aliko Dangote.
According to the project details supplied, the infrastructure will include combined storage capacity of approximately 1.175 million cubic metres.
Damarjog will account for about 375,000 cubic metres, while the Dewele terminal will provide approximately 800,000 cubic metres.
Operations Targeted Within 18 Months
The system 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 Ethiopian leader said the infrastructure was expected to reduce logistics costs and delays while strengthening energy security and improving the efficiency and resilience of the Ethiopia-Djibouti corridor.
Ethiopia is landlocked and relies heavily on Djibouti’s ports for access to international markets.
That makes transport infrastructure linking the two countries strategically important for Ethiopia’s economy.
Moving petroleum products through a dedicated pipeline could reduce dependence on road tanker movements for part of the supply chain while potentially improving the reliability of fuel distribution.
Dangote Group said the pipeline would support the efficient transportation of refined petroleum products and meet growing energy requirements in Ethiopia and the wider region.
African Capital Behind Regional Infrastructure
The project also represents another stage in Dangote Group’s expansion beyond its traditional Nigerian base.
Dangote has developed substantial interests across African markets, particularly in cement and industrial production.
The Damarjog-Dewele project extends that footprint into strategic energy logistics.
For Ethiopia and Djibouti, successful implementation could strengthen a corridor already critical to trade in the Horn of Africa.
The next major test will be delivering the project within its proposed timetable and ensuring that the infrastructure produces measurable reductions in fuel transportation costs and supply disruptions.
