$660 Million Djibouti-Ethiopia Pipeline To Boost Trade, Energy Security, Dangote Says At Groundbreaking
“Djibouti will gain increased port activity, higher revenues and more jobs. A win-win outcome for both nations. Local businesses will also have more opportunities,” Dangote said.
The President and Chief Executive of Dangote Group made the remarks on Thursday during the groundbreaking ceremony for the Damarjog Oil Terminal and Pipeline Damarjog-Dewele project at the Djibouti Damerjog Industrial Park.
The project will connect marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia, creating a pipeline network for refined petroleum products.
“A modern multiproduct pipeline will receive, store, transport and distribute refined petroleum products.”
Dangote said the project would provide Ethiopia with greater energy security while reducing the logistics challenges associated with petroleum transportation.
“Upon completion, as mentioned, Ethiopia will gain greater energy security and fewer logistics bottlenecks.”
He said improved petroleum supply would also support sectors including aviation, transport, agriculture, construction and industry.
“It will also benefit from better product quality control. Key sectors such as industry, aviation, transport, agriculture and construction will be better supported.”
The $660 million pipeline is also expected to reduce pressure on existing transportation systems as petroleum products are moved between Djibouti and Ethiopia.
Dangote said the project was particularly important because the Djibouti corridor carries most of Ethiopia’s import and export trade, including petroleum products.
“Today, the Djibouti corridor carries most of Ethiopia’s import and export trade. This includes petroleum products. The corridor is therefore one of the region’s most strategic economic arteries.”
Beyond the direct economic benefits, Dangote said the project would create employment during construction and support permanent technical and administrative jobs once operations begin.
“This project will create jobs during the construction… It will also transfer skills to local people. It will also support permanent technical and administrative jobs when operations begin. Contractors, service providers, transport operators, suppliers and host community will benefit.”
The project is also expected to improve the safety of petroleum transportation by reducing long-distance tanker traffic between the two countries.
“By reducing long-distance tanker traffic, we can ease congestion and reduce road risk. We can also lower the possibility of spills and losses.
“Djibouti’s position as a regional logistics hub will become much, much stronger.”
The Damarjog-Dewele project is part of Dangote Group’s wider push to develop energy and industrial infrastructure across Africa.
The group’s flagship Dangote Petroleum Refinery in Nigeria has a capacity of 700,000 barrels per day and is being positioned for expansion to 1.4 million barrels per day.
