The 120-kilometre multi-product pipeline will connect a new petroleum storage terminal at Damerjog, Djibouti, to Dewele on Ethiopia’s border.
The first phase includes a 375,000-cubic-metre storage terminal capable of handling up to 5 million tonnes of petroleum products annually.
Ethiopian Prime Minister Abiy Ahmed said the project is expected to cut the transportation time for fuel reaching Addis Ababa from about five days by road to roughly one day.
The project is being developed through a partnership between Ethiopian Investment Holdings and Dangote Group.