Ethiopia is taking a new strategic step to reinforce its efforts to export domestically produced energy, aiming to make Djibouti its primary outlet. Alongside this, the prominent Nigerian conglomerate Dangote Group is significantly expanding its industrial investment in Ethiopia and actively participating in gas-linked infrastructure development across the Horn of Africa.
A delegation led by Brook Taye (PhD), chief executive of Ethiopian Investment Holdings, traveled to the Presidential Palace in Djibouti, where they were received by the country’s long-serving President, Ismail Omar Guelleh. The main focus of the discussion was a two-phase pipeline project designed to transport crude oil and natural gas produced in Ethiopia’s Somali region to international markets through Djibouti’s port and transport corridor.
This high-level discussion comes at a time when Ethiopia and Dangote Group are already constructing a massive gas and fertilizer industrial complex in the Somali region’s Ogaden Basin. Developed in partnership with Ethiopian Investment Holdings, the investment for this project has recently risen to over 4 billion US dollars as supporting infrastructure and energy systems continue to expand.
The heart of this massive industrial hub is a factory with an annual production capacity of 3 million tonnes of urea fertilizer. The natural gas supply for this factory will be delivered from Ethiopia’s Calub gas field through a dedicated 100-kilometer pipeline, demonstrating how crucial energy transport is to the project’s success. Beyond fertilizer production, the project includes a gas pipeline system, a 120-megawatt power plant, and downstream processing units. A long-term gas supply agreement with China’s GCL Group ensures supply reliability, integrating the project with international finance and supply chains.
It is within this context that the discussions in Djibouti have gained significant momentum. Brook Taye (PhD) expressed full readiness on behalf of Ethiopia and Dangote Group to establish cross-border energy infrastructure linking domestic production, regional logistics, and export routes.
The proposed cooperation framework is structured in two phases. The first phase aims to build a pipeline to transport refined petroleum products from Djibouti’s port to Daweleh in eastern Ethiopia, which is intended to ease fuel distribution constraints in the domestic market. The second phase involves a more complex export architecture, laying gas and crude oil pipelines from Ethiopia’s Somali region fields through Djibouti, positioning Djibouti as a major transit corridor for future hydrocarbon exports.
For Dangote Group, this discussion signifies the elevation of its Ethiopian strategy beyond fertilizer production to a comprehensive level that encompasses gas utilization, industrial manufacturing, and regional energy logistics. President Ismail Omar Guelleh responded positively to the proposal and outlined a framework to bring the strategic partnership into implementation.
High-level officials attended this historic meeting, including Dangote Group advisers Peter Lazam and Singh Rana, Ethiopia’s ambassador to Djibouti Legesse Tulu, and Djibouti’s Minister of Energy Djama Mohamed Hassan.
