Ethiopia and Djibouti Partner with Dangote on Cross-Border Fuel Pipeline
Ethiopia, Djibouti and Nigeria’s Dangote Group have announced a $660 million plan for a 120-kilometer pipeline carrying refined petroleum products. The line would run from Damerjog in Djibouti to Dewele in Ethiopia, with storage terminals at both ends. The partners expect it to begin operating within 18 months and say it will reduce Ethiopia’s dependence on road tankers for fuel imports.
Ethiopia has lacked direct sea access since Eritrea became independent in 1993, so Djibouti serves as its primary route for imported fuel. Much of that fuel currently travels inland by tanker truck, a system vulnerable to delays and bottlenecks that can push up costs.
The proposed line would run 120 km from Damerjog to Dewele, with storage terminals at both ends. Capacity is planned at roughly 375,000 cubic meters at Damerjog and 800,000 at Dewele. Ethiopian Investment Holdings signed an MoU with Dangote Industries and Great Horn Investment Holding; groundbreaking is set for Sept. 30, 2026.
For Ethiopian households and businesses, a working pipeline could mean more reliable fuel supplies and potentially less cost pressure tied to road delays. Djibouti’s port and storage sector may gain activity, while tanker operators along the corridor could face reduced demand. If completed on schedule, the project may also lower transport-related emissions, though actual effects would depend on construction, operation, and how much road haulage is displaced.