The project, being developed in partnership with Ethiopian Investment Holdings, will involve the construction of a 120-kilometre pipeline and storage facilities with a combined capacity of about 1.175 million cubic metres across the two countries.
A spokesperson in the office of Ethiopian Prime Minister Abiy Ahmed disclosed the details to Reuters on Thursday, while Abiy announced the project during a visit to Djibouti with President Ismail Omar Guelleh and Dangote.
The pipeline will connect Damerjog in Djibouti with Dewele in Ethiopia and is expected to become operational within 18 months.
About 375,000 cubic metres of storage capacity will be provided at Damerjog, while Dewele will have approximately 800,000 cubic metres.
The project is designed to improve the movement of refined petroleum products along the Ethiopia-Djibouti transport corridor by reducing logistics costs and delays, while strengthening energy security and supply-chain resilience in both countries.
Dangote Group already has investments in Ethiopia, including a $4bn fertiliser project and power plant, as well as a polypropylene packaging facility.
The pipeline adds to Dangote’s expanding energy interests across East Africa, with the group also expected to break ground next week with the Kenyan government for a new 700,000-barrel-per-day crude oil refinery in Lamu.
The planned Kenyan refinery would further expand Dangote’s involvement in the region’s petroleum industry and comes as the group continues to develop projects beyond its home market.
The latest investment also follows the launch of the Dangote Refinery’s initial public offering on the Nigerian Exchange Group in Lagos on September 14, 2026.
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