Energy infrastructure companies Black Rhino and MOGS Oil & Gas Services (BRM), together with the Governments of Djibouti and Ethiopia recently signed Framework Agreements for the construction of a 550km fuel pipeline system running through Djibouti and Ethiopia in The Horn of Africa. The $1.55bn multiproduct pipeline will transport diesel, gasoline and jet fuel from Damerjog, Djibouti to Awash in central Ethiopia. Deemed a critical infrastructure project, the project will support economic growth across the region.
Commenting on the development, Black Rhino CEO Brian Herlihy said:
“We are pleased to be working in partnership with the Governments of Ethiopia and Djibouti on this important project, which will be transformative for the region. The pipeline will increase energy security, aid economic development and reduce harmful emissions.”
Scheduled for completion in 2018, the development is expected to increase the efficiency and safety of Ethiopia’s fuel import supply chain by aiding in the reduction of fuel transportation costs, increasing scalability of fuel imports and significantly decreasing the carbon output from importing fuel. The project will also reinforce Djibouti as a regional shipping hub by expanding the port’s capacity.
MOGS Oil & Gas Services CEO, Errol Gregor, said:
“The Horn of Africa project will sustain the momentum of economic growth and growing fuel demand in both Djibouti and Ethiopia by enabling high-quality, consistent energy supply at reasonable cost points for the two regions."