Commodities
Home›Commodities›Energy›Dangote backs $660m pipeline connecting Djibouti and E…
Dangote backs $660m pipeline connecting Djibouti and Ethiopia
The planned 120 km link includes roughly 400 million litres of storage and targets cutting overland fuel transport time to Addis Ababa from five days to one day, according to Ethiopia's prime minister.
A $660 million fuel pipeline project backed by Dangote is set to connect Djibouti's Damerjog port with a distribution facility in Dewele, Ethiopia, supporting the flow of petroleum products into landlocked Ethiopia, BBC Business reports. The project includes a 120 km pipeline and storage capacity of about 400 million litres.
Ethiopian Prime Minister Abiy Ahmed said the pipeline is expected to reduce the time needed to transport fuel from Djibouti's port to Addis Ababa from five days to one day. The first phase will focus on key petroleum products, including jet fuel, diesel, and petrol.
Dangote said the infrastructure would strengthen Ethiopia's energy security and make its fuel supply chain more resilient, while Djibouti is expected to see increased port activity, job creation, and higher government revenues, according to BBC Business.
The outlet also reports that landlocked Ethiopia relies heavily on Djibouti's port for imports, including petroleum products, and that the new infrastructure is expected to reduce pressure on existing transport systems that support industries such as transport, aviation, agriculture, and construction.