An agreement was signed between Ethiopia and Djibouti on Saturday last week (February 7) to start construction of an oil pipeline between the two countries. The agreement was signed by Tolosa Shagi, Ethiopia’s Minister of Mines Ali Yacoub Mahamoud, Djibouti’s Minister of Energy in charge of Natural Resources. The pipeline will be managed by Black Rhino, a US-based global infrastructure firm. The project, expected to cost US$1.4 billion, is to run from Djibouti port, through Dire Dawa to Awash from where the fuel will be distributed across the country. The length of the pipeline will be 550 kms and it will held lower fuel costs and cur back on the number of fuel trucks currently used to transport fuel from Djibouti to Ethiopia. Ethiopian Ambassador to Djibouti, Suleman Dedefo, told the media that the project is expected to be completed in three years. Ethiopia currently imports petroleum using trucks with benzene imported from Sudan to the domestic market. Other oil products which make up 80% percent of total oil imports come through Djibouti ports.
