It has been reported that the Ethiopian government is set to participate directly in the construction of a large-scale oil storage depot at the new Damerjog Liquid Bulk Port, located in the southeastern part of Djibouti.
Negotiations with the Ethiopian Investment Holdings are currently underway, and it is anticipated that the financial commitment will be finalized in the near future. This initiative is widely seen as a major step toward substantially strengthening Ethiopia’s fuel supply security.
According to Djibouti authorities, the construction of the modern jetty at the port is nearing completion. The Ethiopian government expects to provide the necessary funding in the upcoming fiscal year, before the facility becomes operational.
Currently, Ethiopia relies almost entirely on the Horizon Djibouti Terminals near Doraleh for its fuel supply. However, this existing terminal, which has an annual capacity of 4.5 million tons, has been unable to keep up with Ethiopia’s rapidly growing fuel demand.
In contrast, the new Damerjog oil jetty is designed to have an annual handling capacity of 25 million tons and will be capable of accommodating up to 12 vessels simultaneously. With a total storage capacity of nearly two million cubic meters, the facility is expected to provide a sustainable solution to Ethiopia’s expanding energy logistics challenges.
To facilitate the efficient transport of strategic fuel products, the Ethio-Djibouti Railway plans to construct a 17-kilometer line connecting the new Damerjog oil terminal to the Nagad railway station. This railway expansion project is estimated to cost approximately $90 million and will play a critical role in establishing a direct fuel transport link to Ethiopia.
Furthermore, sources indicate that the Ethio-Djibouti Railway has expressed interest in acquiring a 49 percent stake in the Damerjog oil storage project, which includes infrastructure for handling jet fuel.
This ambitious plan is divided into two phases. The first phase involves the installation of a pipeline to transport refined petroleum products from the Djibouti port to the Ethiopian border town of Dewele. The second phase focuses on the construction of a gas and oil pipeline that will enable Ethiopia to export natural gas and crude oil from production sites in the Ogaden region to international markets via the Djibouti corridor.
Industry experts emphasize that this new chapter of development between the two nations will not only boost Ethiopia’s economic growth but also guarantee the security of its energy supply for the long term.
