US$ 1.4bn Ethiopia-Djibouti oil pipeline project given greenlight
Channel: Construction Review
Date: 2015-03-30

Construction of US$ 1.4bn Ethiopia-Djibouti oil pipeline has finally been given authorization to commence after an agreement was signed between the two countries on February 7 this month. The project is set to take three years according to the Ethiopian Ambassador to Djibouti Suleman Dedefo.

The oil pipeline, which measures 550km in length, will stretch from the Djibout port to a fuel depot in Awash and find its way via Ethiopia’s eastern town, Dire Dawa. The fuel is at the end going to be distributed to the whole nation from Awash.

The oil pipeline construction project will be managed by the US-based African infrastructure development company Black Rhino. The signing was done by Ethiopia’s Minister for Mines, Tolosa Shagi and witnessed by Djibouti’s Minister for Energy in charge of Natural Resources, Ali Yacoub Mahamoud.

The fuel reservoir project is anticipated to minimize fuel transportation cost in the region and reduce usage of trucks ferrying the fuel from Djibouti to Ethiopia.

At the moment, Ethiopia imports petroleum using trucks with benzene imported from Sudan to the local market. Other oil products which are come from the Djibouti ports make up 80% percent of total oil imports.

Black Rhino Group and MOGS (Mining, Oil & Gas Services) had submitted proposal for the oil pipeline project late last year.