The Dangote Group is partnering with Ethiopia and Djibouti on a $660 million petroleum pipeline project designed to improve the movement and storage of refined fuel between the two East African countries.

The planned infrastructure will connect Ethiopia and Djibouti through a 120-kilometre pipeline, with the project expected to be completed and operational within 18 months.

The development will also include large petroleum storage facilities in both countries. About 375,000 cubic metres of storage capacity will be built at Damerjog in Djibouti, while another 800,000 cubic metres will be provided at Dewele in Ethiopia.

The project is being developed through a partnership between Ethiopian Investment Holdings and Dangote Group, according to a spokesperson in the office of Ethiopian Prime Minister Abiy Ahmed.

Abiy announced the project during a visit to Djibouti, where he met with Djibouti President Ismail Omar Guelleh and Dangote Group President Aliko Dangote.

The Ethiopian prime minister said the pipeline is expected to cut transportation costs and reduce delays along the Ethiopia-Djibouti corridor, which is an important route for the movement of goods into landlocked Ethiopia.

The project is also expected to strengthen fuel security in both countries by improving petroleum storage and supply infrastructure and making the fuel distribution network more resilient.

The planned pipeline adds to Dangote Group’s expanding investment interests in Ethiopia. The Nigerian conglomerate is separately involved in plans for a $4 billion fertiliser pipeline and power plant, as well as a polypropylene packaging facility in the country.

Dangote is also expanding its energy investments elsewhere in East Africa. The company and the Kenyan government are expected to begin construction of a proposed 700,000-barrel-per-day refinery in Lamu next week.

The projects form part of Dangote’s broader expansion beyond Nigeria, particularly in refining, energy and industrial infrastructure across Africa.