Ethiopia and Djibouti have announced a major cross-border petroleum infrastructure project aimed at strengthening energy security, cutting logistics costs and deepening economic cooperation between the neighboring countries.

The project was unveiled in the presence of Ethiopian Prime Minister Abiy Ahmed, Djiboutian President Ismail Omar Guelleh and Dangote Group founder Aliko Dangote. It will connect Damerjog in Djibouti with Dewele in eastern Ethiopia through a new pipeline for refined petroleum products, supported by storage terminals at both ends.

The infrastructure will be developed through a partnership between Ethiopian Investment Holdings and the Dangote Group. Djiboutian authorities said the planned pipeline will extend about 120 kilometres from the Damerjog Industrial Park to Dewele, creating an alternative to the road transport currently used to move large volumes of fuel into Ethiopia.

Prime Minister Abiy said the project is expected to reduce transportation costs and delays while improving the efficiency and resilience of the Ethiopia-Djibouti trade corridor. He also said the investment would contribute to greater energy security and support broader regional economic integration.

The project is also expected to create employment and business opportunities during construction and operation, including for contractors, suppliers, transport operators and other service providers along the corridor.

The Ethiopia-Djibouti corridor serves as a critical trade and logistics link for landlocked Ethiopia. The new petroleum infrastructure is intended to complement existing transport links by providing a more direct and efficient system for moving refined fuel products from Djibouti into the Ethiopian market.

Abiy described the initiative as part of a wider investment in future economic growth, regional integration and a more secure shared economic relationship, with African backed investment playing a central role.

Source (including image): Ethiopian News Agency