Dangote To Fund $660m Fuel Pipeline Between Ethiopia And Djibouti
Nigerian billionaire Aliko Dangote is helping to fund a new $660 million (£500 million) fuel pipeline between Ethiopia and Djibouti.
The project, a joint venture between Ethiopian Investment Holdings and Dangote Group, was announced on Thursday during a visit by Ethiopian Prime Minister Abiy Ahmed to Djibouti, where he met with Djiboutian President Ismail Omar Guelleh and Aliko Dangote.
According to a spokesperson for Prime Minister Abiy, the project will include a 120-kilometre (75-mile) refined petroleum products pipeline running from Damerjog port in Djibouti to a distribution facility in Dewele, Ethiopia.
The pipeline will include storage facilities with a combined capacity of about 1.175 million cubic metres — about 375,000 cubic metres at Damerjog and 800,000 cubic metres at Dewele.
Officials say the pipeline will cut fuel transport time, reduce logistics costs and delays on the Ethiopia-Djibouti corridor, and strengthen energy security for landlocked Ethiopia, which relies heavily on Djibouti’s port for petroleum imports.
The pipeline is expected to begin operations within 18 months.
Dangote Group already has other projects in Ethiopia, including a $4 billion fertiliser plant, and is also set to break ground next week on a 700,000-barrel-per-day crude refinery in Lamu, Kenya. #Dangote To Fund $660m Fuel Pipeline Between Ethiopia And Djibouti# GCR Upgrades Dangote Industries Ratings, Forecasts Debt to Rise
