Published: · Region: Africa · Category: geopolitics

Ethiopia, Djibouti and Dangote Back 120‑km Fuel Pipeline to Anchor Shared Energy Future

Ethiopia, Djibouti and Dangote Group have agreed to develop a 120‑kilometre fuel pipeline with more than a million cubic metres of storage between Damerjog and Dewele. Prime Minister Abiy Ahmed described the project as an investment in future growth, regional integration and a more secure shared economic future.

Ethiopia, Djibouti and Dangote Group are moving ahead with a cross‑border fuel project that is meant to lock in more reliable supplies for one of Africa’s fastest‑growing economies and deepen a key Red Sea trade corridor.

According to a statement by Ethiopian Prime Minister Abiy Ahmed, the three partners will develop a 120‑kilometre pipeline linking Damerjog in Djibouti to Dewele in Ethiopia. The line will be supported by storage facilities with capacity of more than a million cubic metres.

Abiy called the project “an investment in future growth, regional integration and a more secure shared economic future” in a message on X. He framed it as a long‑term bet on economic ties between the two neighbours, rather than a short‑term fix.

For Ethiopia, which is landlocked, the pipeline offers a way to shift more of its fuel imports away from road tankers and into fixed infrastructure. That can reduce transport risks and costs, and make it easier to keep fuel flowing to homes, farms and factories during times of disruption.

Djibouti, already a critical outlet for Ethiopian trade, stands to gain a larger role as a regional energy hub. Locating major storage and pipeline infrastructure at Damerjog would reinforce its position on the Red Sea routes that connect Africa to global markets.

Dangote Group’s involvement adds a major private‑sector player with experience in large energy and industrial projects. The group is helping fund the pipeline and storage system, in what Abiy’s statement cast as part of a wider push for regional integration.

The key tests now will be how quickly the partners move from announcement to concrete steps such as financing arrangements and construction contracts, and whether the route and facilities can be built without local resistance or serious security problems along the way.

Sources