Nigerian billionaire Aliko Dangote, Ethiopia and Djibouti have announced a $660 million refined petroleum products pipeline project designed to improve fuel transportation and strengthen energy security along the Ethiopia-Djibouti corridor.
The project was announced on Thursday by Ethiopian Prime Minister Abiy Ahmed, alongside Djibouti President Ismail Omar Guelleh and Dangote, during a ceremony in Djibouti.
The development will involve a 120-kilometre multi-product pipeline connecting Damerjog in Djibouti to Dewele in Ethiopia, supported by storage facilities at both ends.
The project is being developed through a partnership between Ethiopian Investment Holdings and Dangote Group.
The pipeline is expected to have combined storage capacity of more than one million cubic metres. The reported plan provides for about 375,000 cubic metres of storage at Damerjog and approximately 800,000 cubic metres at Dewele, giving a combined capacity of about 1.175 million cubic metres.
The project is expected to become operational within 18 months, according to information released by the Ethiopian Prime Minister’s office.
The infrastructure is intended to reduce the cost and delays associated with transporting petroleum products by road between Djibouti and Ethiopia.
Ethiopian state broadcaster EBC reported that fuel currently transported by truck can take about five days to reach its destination, while the new pipeline is expected to reduce the transportation time substantially.
The Ethiopian government said the project will improve the efficiency and resilience of the Ethiopia-Djibouti transport corridor, while strengthening fuel supply and energy security.
“Together with President Ismail Omar Guelleh and Aliko Dangote, we announce today a major strategic investment connecting Damerjog to Dewele through a new refined petroleum products pipeline, supported by storage terminals at both ends,” Abiy said in a statement announcing the project.
Dangote also described the project as part of efforts to develop more efficient energy infrastructure across Africa.
According to the Dangote Group, the pipeline will connect coastal storage and distribution facilities in Djibouti with inland storage facilities in Ethiopia, allowing refined petroleum products to be received, stored, transported and distributed through a dedicated system rather than relying primarily on road haulage.
The project further expands Dangote Group’s investments outside Nigeria, particularly in Africa’s energy and industrial sectors.
Dangote already has a major presence in Ethiopia, where the group has been involved in projects including a fertiliser complex and other industrial investments.
The new pipeline also comes as Dangote expands his energy interests elsewhere in East Africa.
In Kenya, Dangote Group is preparing to break ground on a proposed 700,000-barrel-per-day refinery in Lamu on September 30, 2026. The project is estimated at roughly $15 billion to $17 billion in various reports and is expected to serve Kenya and wider regional fuel markets.
The proposed Lamu refinery is part of a broader industrial development planned for Kenya’s coast and would significantly expand Dangote’s refining footprint beyond his 650,000-barrel-per-day refinery in Lagos, Nigeria.
The Ethiopia-Djibouti pipeline, however, is a separate project focused on the transportation and storage of refined petroleum products, rather than refining crude oil.
The latest development places Dangote Group at the centre of several major energy infrastructure projects across Africa, as the company seeks to expand its role in petroleum production, refining, storage and distribution beyond Nigeria.
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