Ethiopia and Djibouti conclude pipeline construction agreement

Ethiopia and Djibouti concluded an agreement giving a green light for the construction of an oil pipeline that stretches across the two countries. The pipeline is going to be managed by the US based African infrastructure development company Black Rhino.

The agreement was signed at the beginning of February by Tolosa Shagi, Ethiopian Minister of Mines and Ali Yacoub Mahamoud, Djibouti’s Minister of Energy in charge of Natural Resources Department.

The fuel reservoir project is said to cost US$1.4 billion and expected to minimise fuel transportation costs.

The land locked country, Ethiopia, imports petroleum via road using trucks, which is costly.

The plan is to construct a pipeline that stretches from the Djiboutian sea ports to a fuel depot in Awash, via Ethiopia’s eastern town, Dire Dawa. The pipeline will be 550 km long and is expected to minimise fuel trucks that make the trek from Ethiopia to Djibouti.

According to Ethiopian Ambassador to Djibouti, the project is expected to be completed in three years time.

Black Rhino was founded with the aim of addressing critical needs for infrastructure and energy development across the African continent.


Edited from various sources by Elizabeth Corner

Sources: 2Merkato.comGeeska Afrika Online

Published on 23/02/2015


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