Dangote Group Breaks Ground on $660m Djibouti–Ethiopia Pipeline

Dangote Group has broken ground on a $660 million petroleum pipeline project linking Djibouti and Ethiopia, extending the Nigerian-owned conglomerate’s energy infrastructure plans into the Horn of Africa.

The planned Damarjog–Dewele project would connect coastal fuel storage in Djibouti with inland storage and distribution facilities in Ethiopia. Premium Times reports that the multiproduct pipeline is planned to run for 120 kilometres. The groundbreaking took place at Djibouti’s Damerjog industrial zone.

The project is intended to move refined petroleum products into Ethiopia through a dedicated pipeline rather than relying as heavily on long-distance tanker journeys. Dangote Group says that, once built, it could reduce transport bottlenecks, ease congestion and improve the reliability of fuel deliveries. Those benefits remain projections; the pipeline is not yet operating.

Djibouti’s President Ismaïl Omar Guelleh and Ethiopian Prime Minister Abiy Ahmed welcomed the project at the ceremony, according to Premium Times. They described potential gains for Djibouti’s port and logistics operations and Ethiopia’s access to fuel. Jobs during construction and operations are also expected, although the reports do not establish how many will be created.

Aliko Dangote said at the groundbreaking that the corridor carries much of Ethiopia’s import and export trade, including petroleum products. Arise News reported his remarks on the proposed reduction in tanker traffic and his expectation that local contractors and suppliers would benefit as the project develops.

For Nigerian readers, the development is an overseas investment by a Nigerian-owned business, not a Nigerian government pipeline. The available reports do not establish a direct effect on fuel prices or supply within Nigeria. Dangote Group operates its major petroleum refinery in Lagos and has described the Djibouti–Ethiopia project as part of its wider African infrastructure plans.

Sources: Premium Times, Arise News