On September 24, 2026, Djibouti's President Ismaïl Omar Guelleh, Ethiopian Prime Minister Abiy Ahmed, and Nigerian business magnate Aliko Dangote marked the beginning of a new pipeline and oil terminal project. The ceremony took place at the Damerjog Industrial Park, where the terminal will be built. The project aims to provide a reliable fuel supply to Ethiopia and reduce the country's reliance on road transport. The terminal will have a storage capacity of 375,000 cubic meters and will be able to process five million tons of petroleum products per year.
The pipeline and terminal project is a joint investment between Dangote Group and Ethiopian Investment Holdings, valued at $160 million. The terminal will be connected to the Damerjog-Nagad railway line and the Damerjog Liquid Bulk Port by a common collector system. This strategic location will enable the efficient transportation of fuel and other petroleum products. The project is expected to create several hundred local jobs and provide opportunities for local businesses in construction, logistics, and maintenance.
The pipeline, which will stretch 120 kilometers from Damerjog to Dawanleh, a border town in eastern Ethiopia, is designed to supply refined petroleum products to the Ethiopian market. The project aims to reduce congestion on the roads, lower carbon emissions, and prevent fuel shortages. In the long term, it may also facilitate the export of regional energy resources. The project's promoters envision it as a crucial component of the region's energy infrastructure.
The project strengthens the economic ties between Djibouti and Ethiopia, two countries with a long history of cooperation. The partnership between Dangote Group, a leading industrial conglomerate in West Africa, and Ethiopian Investment Holdings demonstrates the potential for regional collaboration in the energy sector. Djibouti's President Ismaïl Omar Guelleh and Ethiopian Prime Minister Abiy Ahmed have been working together to promote economic integration and development in the region.
The terminal and pipeline project will have a significant impact on Ethiopia's energy security and logistics. By reducing reliance on road transport, the project will lower costs and improve the efficiency of fuel distribution. The project will also enhance the attractiveness of the Damerjog Industrial Park, which is expected to become a major hub for industrial and commercial activities.
Dangote Group is a diversified conglomerate with interests in cement, sugar, flour, and other industries. The company's entry into the petroleum sector with this project demonstrates its commitment to investing in Africa's energy infrastructure. The project is expected to have a positive impact on the regional economy and contribute to the growth of the energy sector.
The launch of the pipeline and oil terminal project marks a significant milestone in the economic cooperation between Djibouti and Ethiopia. The project is expected to have far-reaching benefits for the region, including improved energy security, reduced carbon emissions, and increased economic growth. As the project progresses, it will be closely watched by investors, policymakers, and industry experts.
Key points
- The project aims to reduce congestion on the roads, lower carbon emissions, and prevent fuel shortages in Ethiopia.
- The terminal will have a storage capacity of 375,000 cubic meters and will be able to process five million tons of petroleum products per year.
- The project is expected to create several hundred local jobs and provide opportunities for local businesses in construction, logistics, and maintenance.
