Ethiopia and Djibouti Initiate $660 Million Petroleum Pipeline Project

Ethiopia and Djibouti have finalized an agreement to construct a $660 million petroleum pipeline and storage facility. The infrastructure project includes a 120km pipeline connecting the port of Damerjog to a distribution hub in Dewele, alongside 400 million liters of storage capacity. Operations are scheduled to commence within 18 months.

The project aims to reduce fuel transit times from five days to one, addressing critical logistics bottlenecks for landlocked Ethiopia. By streamlining the supply chain for diesel, petrol, and jet fuel, the initiative is intended to bolster energy security and support industrial sectors including aviation and agriculture.

This development represents a significant expansion of regional infrastructure, reducing reliance on existing road-based transport systems. For Djibouti, the project serves to increase port throughput and government revenue. The investment aligns with broader regional efforts to integrate energy logistics and enhance supply chain resilience across the Horn of Africa.