Nigerian industrialist Aliko Dangote, through the Dangote Group, is partnering with Ethiopia and Djibouti to develop a $660 million refined petroleum products pipeline and storage infrastructure aimed at strengthening fuel supply logistics along the Ethiopia-Djibouti corridor.
The project, announced by Ethiopian Prime Minister Abiy Ahmed’s office, will comprise a 120-kilometre refined petroleum products pipeline linking Ethiopia and Djibouti, alongside a combined 1.175 million cubic metres of petroleum storage capacity. Of the planned storage, about 375,000 cubic metres will be located at Damerjog in Djibouti, while 800,000 cubic metres will be developed at Dewele in Ethiopia.
According to the Ethiopian Prime Minister’s office, the infrastructure is expected to become operational within 18 months. The project is being developed through a partnership between Ethiopian Investment Holdings and the Dangote Group.
The pipeline and storage facilities are intended to reduce logistics costs and delays along the Ethiopia-Djibouti transport corridor, while improving the reliability and resilience of petroleum products supply to the two countries.
The development further extends Dangote Group’s growing industrial footprint in East Africa. The Nigerian conglomerate is already developing a $4 billion fertiliser pipeline and power plant, as well as a polypropylene packaging facility, in Ethiopia.
For the downstream petroleum market, the proposed infrastructure represents an effort to move a greater portion of fuel logistics from road-based transportation towards dedicated pipeline and bulk storage infrastructure. The additional storage capacity could also provide greater flexibility in receiving, holding and distributing refined petroleum products along the corridor.
The announcement comes as Dangote continues to pursue a wider expansion of its energy interests across Africa. In Kenya, the group and the Kenyan government are scheduled to break ground on a proposed 700,000-barrel-per-day crude oil refinery in Lamu next week.
The emerging East African projects place Dangote’s Nigerian refining and energy ambitions within a broader regional context, with investments spanning refined products logistics, crude refining, fertiliser, power and petrochemical-related infrastructure.
For Ethiopia and Djibouti, the immediate focus is on improving the efficiency and resilience of petroleum products supply along a strategically important trade corridor. For Dangote, the projects reinforce the group’s expanding participation in Africa’s energy and industrial infrastructure landscape.