Under the patronage of Djibouti's President Ismaïl Omar Guelleh, the country and Ethiopia have initiated a project to install a petroleum storage and transportation system. The project, led by Dangote Industries Limited with support from African institutional and financial partners, aims to connect the Djibouti Damerjog Industrial Parc (DDIP) to Ethiopia's Dawenlé. The 375,000m³ terminal will be linked to Dawenle by a 120km pipeline.
The project launch ceremony was attended by Ethiopian Prime Minister Abiy Ahmed, Dangote Group founder and CEO Aliko Dangote, and officials from Afreximbank and the Africa Finance Corporation. All parties emphasized the project's regional significance, which is expected to transform the way petroleum products are transported between Djibouti and Ethiopia. The project will create an integrated energy chain between the two countries.
The first phase of the project involves constructing a 375,000m³ storage terminal at Damerjog, which will be linked to Dawenle by a 120km pipeline. The terminal will enable the transportation of petroleum products from Djibouti to Ethiopia, reducing reliance on road transport and improving the efficiency of energy supply. The project is expected to have a significant impact on Ethiopia's energy security.
The project's long-term goal is to increase storage capacity to nearly 1 million m³, with facilities at both Damerjog and Dawenle. This will enable the two countries to better manage their energy needs and reduce reliance on road transport. The project is also expected to boost Djibouti's role as a regional hub for energy storage and redistribution.
The Damerjog Industrial Park, where the terminal is being built, is a key component of Djibouti's industrial and logistics strategy. The park aims to become a major petrochemical and logistics hub in the Horn of Africa. With a planned capacity of 25 million tons per year, the terminal is expected to play a critical role in meeting the region's energy needs.
According to Radwan Houssein Wais, CEO of the Damerjog Djibouti Industrial Park, the project is part of a broader strategy to create a "pan-African" and "human" industrial hub. The park aims to become a major economic bridge between Africa and the global market. The project is expected to have a significant impact on the region's economic development.
The project is expected to be completed in phases, with the first phase focusing on the construction of the storage terminal and pipeline. Once completed, the project will provide a secure and efficient energy supply to Ethiopia, while also boosting Djibouti's role as a regional energy hub.
Key points
- The project will link the Djibouti Damerjog Industrial Parc to Ethiopia's Dawenlé with a 120km pipeline.
- The terminal will have an initial capacity of 375,000m³, with plans to increase to nearly 1 million m³.
- The project aims to reduce reliance on road transport and improve energy security in the region.
