Ethiopia and Djibouti Break Ground on $660 Million Fuel Pipeline
Addis Ababa/Djibouti — Leaders from Ethiopia and Djibouti have officially launched the construction of a major cross-border infrastructure project: a 120-kilometre refined petroleum products pipeline connecting Djibouti’s coastal town of Damerjog to Dewele in eastern Ethiopia.
The landmark project, backed by Ethiopian Investment Holdings and the Dangote Group, represents a $660 million investment aimed at transforming the region’s energy logistics.
According to officials, the pipeline will be equipped with over one million cubic metres of combined storage capacity at both ends. The primary objective of the project is to slash logistics costs, boost energy security, and streamline the supply of essential fuels—including jet fuel, diesel, and petrol—for landlocked Ethiopia.
The initiative is expected to significantly reduce the reliance on road tankers for fuel transportation. Beyond improving supply chains, the project promises to generate jobs and foster stronger trade ties across the Horn of Africa. The pipeline is projected to become operational within 18 months.
Ethiopian Prime Minister Abiy Ahmed Ali confirmed the development in a statement, emphasizing the collaborative effort behind the project.
“Together Djibouti, Ethiopia and the Dangote Group will develop a 120-kilometre pipeline connecting Damerjog to Dewele, with more than one million cubic meters of combined storage capacity at the two ends,” the Prime Minister stated.
While the project is poised to deliver substantial economic benefits, observers have noted that Ethiopia’s ongoing internal security issues could pose potential challenges to the broader regional trade and infrastructure goals.
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