Ethiopia is taking steps to strengthen its energy security by implementing a $660 million pipeline project that will connect the country with Djibouti. Nigerian industrialist Aliko Dangote is also participating in the investment in this project.
According to information from Ethiopian Investment Holdings, this 120-kilometer pipeline will connect the Damerdjog refinery in Djibouti with the city of Dewale in the Somali region of Ethiopia. The project includes the construction of storage facilities at both ends of the route and is projected to be completed within two years.
The CEO of Ethiopian Investment Holdings, Bruk Taye, noted that this infrastructure will allow fuel arriving in Djibouti to be stored and then transported via the pipeline into Ethiopia. Taye emphasized that the project's implementation will help reduce freight and downtime costs, decrease fuel transportation expenses, and save foreign currency.
"When a ship arrives, it is unloaded at the warehouse, and the refined products will immediately be transported via the 120-kilometer pipeline," stated Taye. The project is being implemented as a partnership between Ethiopian Investment Holdings and Dangote Group and aims to strengthen energy security while reducing dependence on tanker trucks.
The first phase of the pipeline will be dedicated to transporting refined petroleum products, including aviation fuel, diesel fuel, and gasoline, becoming part of broader efforts to improve regional trade and economic integration.