Dangote Industries is set to begin construction of a pipeline linking Djibouti and Ethiopia next week as the Nigerian conglomerate expands its energy infrastructure projects across Africa.
The company is also developing a 2,650-kilometre pipeline connecting Namibia, Botswana and South Africa, with the project expected to cost more than $3.5 billion.
President of Dangote Industries, Aliko Dangote, disclosed the plans during an interview in Qatar, saying the company was building a wider network of pipelines and storage facilities to improve the distribution of petroleum products across the continent.
Dangote said the company’s pipeline network could eventually extend to almost 4,000 kilometres when the various projects are completed.
The Djibouti-Ethiopia project will be developed alongside tank farms, although the cost of the pipeline has not been disclosed. The $3.5 billion estimate applies specifically to the planned southern African pipeline.
According to Dangote, the projects are designed to improve the movement of petroleum products to landlocked countries and reduce the reliance on road transportation, which can be costly and inefficient over long distances.
The expansion is part of Dangote Industries’ broader plans to build infrastructure around its refining and industrial businesses across Africa.
In Nigeria, the group is also planning a 600-kilometre offshore gas pipeline to connect offshore gas producers with facilities that can transport gas to shore.
Group Vice President, Oil and Gas and Fertiliser at Dangote Industries, Devakumar Edwin, said the engineering design for the offshore project had been completed and construction was expected to begin soon.
He said the pipeline would allow offshore producers to connect their gas fields to the network, helping to bring more gas resources into production.
Edwin said inadequate infrastructure had left some offshore gas discoveries undeveloped because producers lacked a reliable way to transport the gas to shore.
Beyond its pipeline plans, Dangote Industries is expanding its power and fertiliser businesses. Its refinery currently generates 501 megawatts of electricity, while its fertiliser complex produces more than 150MW, giving the group more than 650MW of combined generation capacity.
The company also plans to increase fertiliser production from three million tonnes annually to 12 million tonnes, with four additional fertiliser plants planned in Nigeria and further projects under development in Ethiopia and another African country.
Meanwhile, the Dangote Petroleum Refinery and Petrochemicals is seeking to raise about N2.15 trillion through its ongoing initial public offering to support expansion and strengthen its financial position.
The refinery’s capacity is also expected to rise from 700,000 barrels per day to 1.4 million bpd. Edwin said most of the engineering work had been completed and major equipment had already been ordered, with the expansion targeted for completion within about three years.
The various refinery, pipeline, gas, fertiliser and petrochemical investments form part of Dangote Industries’ Vision 2030 strategy to expand industrial production and increase the value derived from Africa’s natural resources.
