Home | News    Friday 12 February 2016

Ethiopia and Djibouti oil pipeline project set for construction


By Tesfa-Alem Tekle

February 11, 2016 (ADDIS ABABA) – Black Rhino, a company owned by funds from United States investment firm Blackstone Group firm is gearing up to launch the construction of a 550-kilometer fuel pipeline linking landlocked Ethiopia to Djibouti.

The United States Assistant Secretary of State, Antony Blinken, told reporters Thursday that construction of the $1.55bn project will soon be launched.

Last year Ethiopia and Djibouti signed an agreement to carry on the construction of the fuel pipeline due to be completed in 2018.

When the fuel pipeline project also known as Horn of Africa pipeline (HOAP), goes operational, it will transport diesel, gasoline and jet fuel to the horn of African nation whose annual fuel demand grows at an average rate of 15%.

The pipeline project is projected to boost energy security and economic development to Ethiopia, one of the world’s fast growing economy.

After Ethiopia and Eritrean fought a two year long border war in 1998, Addis Ababa has become highly dependent on Djibouti ports to carry out its total import export trade which makes up over 90%.

Currently the country transports its imported fuel using hundreds of tanker trucks, but it is costly and time consuming ineffective to meet Ethiopia’s energy requirements.

But the new venture project is said to ease those burdens which Ethiopia says had long been setbacks to advance its economic development as much as desired.

The pipeline is expected to raise capacity significantly to 240,000 barrels per day.

Beyond securing Ethiopia’s energy security, the pipeline is also said to reduce the carbon impact of current transportation systems.

The project will be funded by Black Rhino, an US company founded to meet the critical needs for infrastructure and energy development across the African continent.

This is the second oil pipeline project Ethiopia has signed with its neighbors.

Previously Ethiopia has entered in to agreement to construct a massive transportation corridor project aimed to link Kenya to South Sudan and Ethiopia.

The $22bn Lamu-Southern Sudan-Ethiopia Transport (LAPSSET) Corridor project, currently under construction, seeks to advance transportation network, boost the volume of cross-border trade across the region to boost socio-economic development.

It will also open business and investment opportunities and further will have enormous savings on transport and shipping costs as well as transit time.

The project’s main section is Lamu Port, which will have a road network linking Kenya, Ethiopia and South Sudan, but it also incorporates a port at Manda Bay, a standard gauge railway line to Juba, oil pipelines, a refinery at Bargoni and three airports.


Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.
  • 12 February 2016 13:14, by Force 1

    South sudan must join Ethiopia-Djibouti pipeline construction to escape Sudan rediclous transit fees. The Ethiopia-Djibouti-South Sudan trio would be the greatest business partnership in entire eastern Africa.

    repondre message

    • 12 February 2016 13:24, by Force 1

      The easiest part of this partnership would be; the three share the cost. The situation now between south sudan and sudan is; sudan is the one who take the largest share than the South Sudan who actually own the oils! Therefore the decision to partner with Ethiopia-Djibouti-South wouldn’t be that difficult to make.

      repondre message

Comment on this article

The following ads are provided by Google. SudanTribune has no authority on it.

Sudan Tribune

Promote your Page too

Latest Comments & Analysis

What Makes an Uprising? 2021-09-03 17:29:45 By: Dr Lam Akol* In an undated article, Hon. Atem Garang de Kuek discussed what was required for an uprising in South Sudan to succeed as did three uprisings in the recent history of Sudan (...)

Is IGAD partly responsible for current confusion in South Sudan? 2021-08-21 09:41:17 By Bol Khan In April 2016, Radio Tamazuj posted and answered questions about the fainting Security arrangements or demilitarization of the capital, Juba as stipulated in 2015's signed ARCSS and (...)

South Sudan People Coalition for Civil Action (PCCA) is to create warlords 2021-08-19 11:06:28 By Steve Paterno In South Sudan, where just about everyone has access to guns (tons of them), and almost every ambitious politician is a potential warlord, any slight destabilization of the (...)


Latest Press Releases

Statemeny bu Hala al-Karib to UN Security Council on women conditions in Sudan 2021-09-15 11:59:16 Statement by Ms Hala Al-Karib to the UN Security Council 14 September 2021 Madam President, Excellencies, My name is Hala Al-Karib and I am the Regional Director of the Strategic Initiative (...)

Joint Communiqué on the visit of H.E. the Prime Minister of the Republic of Sudan to Juba 2021-08-23 11:23:26 19 – 21 August 2021 His Excellency Dr Abdallah Hamdok, Prime Minister of the Republic of the Sudan and Chairperson of IGAD, accompanied by Ministers of Defence, Foreign Affairs, Trade, (...)

S. Korea supports UN communities building resilience project in Sudan’s Blue Nile 2019-09-09 09:26:41 UNDP Sudan September 5, 2019 (KHARTOUM) - An agreement was signed on 5th of September between the Korean Ambassador, His Excellency. Lee Ki-Seong and Dr. Selva Ramachandran, Resident (...)


Copyright © 2003-2021 SudanTribune - All rights reserved.