A $1.55 billion fuel pipeline agreement has been signed by Ethiopia and Djibouti.
The agreement for the construction of the 340 mile pipeline to transport diesel, petrol and jet fuel from port access in Djibouti to central Ethiopia was also signed with two developers – Mining, Oil and Gas Services and Black Rhino Group.
According to Bloomberg construction is expected to be complete in 2018 after financials close next year.
Currently fuel is typically delivered by tanker truck to landlocked Ethiopia.
Brian Herlihy, Black Rhino CEO says: ‘The pipeline will increase energy security, aid economic development and reduce harmful emissions.’
The Horn of Africa Pipeline project will also include an import facility and 950,000 barrels of storage capacity in Damerjog, Djibouti, linked to a storage terminal in Awash, Ethiopia.
The line is capable of transporting 240,000 barrels a day of fuel.