Nigerian billionaire Aliko Dangote, Ethiopia, and Djibouti have announced a $660 million refined petroleum pipeline linking both countries directly together. The project will establish a 120-kilometre pipeline connecting Damerjog in Djibouti with Dewele in Ethiopia, alongside major storage facilities there.
According to Ethiopian officials, the infrastructure should become operational within 18 months, strengthening petroleum supply across the strategic regional corridor. Ethiopian Investment Holdings and Dangote Group will develop the project, combining public investment resources with Dangote’s industrial and financial expertise.
At Damerjog, the planned terminal will provide approximately 375,000 cubic metres of storage capacity for imported refined petroleum products there. Meanwhile, Dewele in Ethiopia will receive another 800,000 cubic metres, creating substantial storage capacity across both ends of the pipeline.
Prime Minister Abiy Ahmed announced the investment alongside Djibouti President Ismail Omar Guelleh and Dangote during an official visit there. The pipeline aims to reduce logistics costs and delays currently associated with transporting petroleum products along the Ethiopia-Djibouti corridor daily.
Developers also expect dedicated pipeline infrastructure to strengthen energy security while improving resilience across regional fuel supply chains considerably overall. For Ethiopia, the project could reduce dependence on long-distance tanker trucks moving refined petroleum products from Djibouti into the country.
Djibouti could also strengthen its position as Ethiopia’s principal maritime gateway by supporting more efficient regional petroleum transportation infrastructure overall. During the launch, Dangote described the project as part of efforts to improve African energy self-reliance through modern infrastructure investments.
The investment adds another major East African project to Dangote Group’s expanding interests across Ethiopia, Djibouti, and neighbouring markets regionally. Dangote Group already has significant Ethiopian interests, including fertilizer and power infrastructure alongside a polypropylene packaging facility there currently operating.
The new pipeline also follows Dangote’s broader expansion into East Africa’s energy sector through planned refining and infrastructure investments regionally. Officials say the project will improve supply efficiency, lower transportation bottlenecks, and support stronger economic integration between Ethiopia and Djibouti.
With refined products moving through dedicated infrastructure, businesses could benefit from more reliable fuel availability along the strategic trade corridor. The $660 million Dangote pipeline therefore represents a significant infrastructure investment connecting African energy markets through regional cooperation and stronger integration.
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