Djiboutian President Ismaïl Omar Guelleh and Ethiopian Prime Minister Abiy Ahmed are set to jointly lay the foundation stone for a strategic petroleum product storage terminal at the Damerjog Industrial Park. The project, spearheaded by the Dangote Group and Ethiopian Investment Holdings, marks a significant leap forward in economic integration and bilateral cooperation between the two nations. The terminal will be built on approximately 80 hectares within the Damerjog Industrial Park and represents an estimated investment of $160 million.
The terminal is designed to bolster regional energy capabilities, featuring a storage capacity of 375,000 cubic meters and a transit capacity of up to 5 million tons of petroleum products per year. The facility will connect directly to the Damerjog-Nagad railway line and link to the Damerjog Liquid Bulk Port via a common collector system, ensuring seamless logistics and distribution. This will serve as a vital catalyst for economic growth on both sides of the border, stimulating local economic activity and creating hundreds of jobs in Djibouti.
For landlocked Ethiopia, the initiative provides a crucial alternative to heavy road transport, drastically cutting logistics costs, easing highway congestion, and securing a reliable, long-term energy supply. The terminal is expected to have a significant impact on Ethiopia's economy, reducing its carbon footprint and reliance on road transport. The project is a key component of the two nations' efforts to enhance their economic ties and regional cooperation.
The development forms the cornerstone of a much larger vision: the 120-kilometer Damerjog multi-product pipeline. Connecting the storage facilities directly to the border town of Dawanleh in eastern Ethiopia, this cross-border pipeline will ensure a sustainable, uninterrupted flow of refined petroleum products to the Ethiopian market. The pipeline will further solidify the two nations' commitment to regional cooperation and economic integration.
Bound by deep-rooted historical and cultural ties, Djibouti and Ethiopia continue to set a benchmark for successful economic integration in Africa. This strategic energy backbone will pave the way for future regional resource sharing and expanded international trade. The two nations have made significant strides in recent years to strengthen their economic ties, with this project being a major milestone.
The Damerjog Petroleum Terminal is expected to have a lasting impact on the region, driving economic growth and development in both Djibouti and Ethiopia. The project will also create new opportunities for service and maintenance, further elevating Djibouti's status as a premier regional logistics and energy hub. As the project moves forward, it is expected to have a positive impact on the regional economy.
The groundbreaking ceremony for the Damerjog Petroleum Terminal is set to take place on September 24, 2026, marking a significant milestone in the two nations' efforts to enhance their economic ties. The project is a testament to the strong partnership between Djibouti and Ethiopia, and it is expected to have a lasting impact on the region.
Key points
- The Damerjog Petroleum Terminal will feature a storage capacity of 375,000 cubic meters and a transit capacity of up to 5 million tons of petroleum products per year.
- The terminal will connect directly to the Damerjog-Nagad railway line and link to the Damerjog Liquid Bulk Port via a common collector system.
- The project represents an estimated investment of $160 million and is expected to stimulate local economic activity and create hundreds of jobs in Djibouti.
