Pipeline Project Will Strengthen Ethiopia, Djibouti Energy Security – Dangote

Businessman Aliko Dangote says the Ethiopia-Djibouti petroleum infrastructure project will strengthen energy security and improve the distribution of refined petroleum products across the two countries.

Dangote spoke on Thursday during the groundbreaking of the project in the Republic of Djibouti.

The project, being developed in partnership with Dangote Group, Ethiopia Investment Holdings and the Djibouti authorities, comprises a 120-kilometre multiproduct pipeline and a combined storage facility with a capacity of 400 million litres.

Dangote said the project was designed to address growing demand for petroleum products while reducing reliance on long-distance road transportation.

He said the Djibouti corridor carries a significant portion of Ethiopia’s import and export trade, including petroleum products, making the modernisation of the supply system necessary.

“As demand grows, we must modernize the system. We should not rely mainly on long-distance road haulage for such a critical product.”

The pipeline will connect marine and coastal storage facilities at Damarjok in Djibouti to inland storage and distribution facilities at Dewele.

According to Dangote, the first phase of the project will support the handling and distribution of Jet A, automobile gas and Premium Motor Spirit, PMS.

He said the infrastructure would improve supply reliability, inventory management and strategic petroleum reserves while easing pressure on road transportation.

“A modern multiproduct pipeline will receive, store, transport, and distribute refined petroleum products. It will do so in a very safe, efficient, and reliable manner.”

Dangote said Ethiopia would benefit from improved energy security and fewer logistics bottlenecks, while Djibouti would see increased port activity, revenue and employment opportunities.

He described the project as a partnership that would benefit both countries.

“This is not just a pipeline project, it is a transformative project that expands the economy and entrenches energy security in a very volatile times as we are today.”

The businessman said the project would also complement existing road transportation, while helping to reduce tanker traffic, congestion, road risks and petroleum spills.