Follow-ups:Forum of Horn Vision"HAPC"
Date:May23, 2026
In a significant move to enhance energy integration in the Horn of Africa region, Ethiopia is intensifying its strategic efforts to transform Djibouti into a major outlet for its future energy exports.
These moves are driven by the Dangote Group ‘s expansion of its industrial business and deepening of its investments in gas-related infrastructure in the region.
High-level Talks for a Promising Project:
Djiboutian President Ismail Omar Guelleh met with a high-level Ethiopian delegation headed by the CEO of the Ethiopian Investment Holding Company, Brook Taye. Discussions focused on the mechanisms for implementing a two-phase pipeline project aimed at transporting the growing oil and gas production from Ethiopia’s Somali region to international markets via Djibouti’s ports and advanced transport corridors.
Huge Investments and an Integrated Industrial Complex:
The project, which is being developed in cooperation with the Ethiopian investment arm, has witnessed a significant investment leap; its estimated cost has recently risen to exceed US$ 4 billion. This increase is due to the expansion of supporting infrastructure, energy systems, and basic production capacities.
The establishment of the project carries key objectives, the most important of which is linking the industrial energy development projects implemented by the Dangote Group in the region; in addition to establishing a gas industrial complex that is entirely dependent on the production of fertilizers, and mainly focused on the resources of the Ogaden Basin ; in addition to establishing a huge urea fertilizer production plant as the heart of the project, targeting an annual production of about 3 million tons, with the plant being supplied with natural gas from the Ethiopian Kalub fields via a dedicated pipeline network extending to more than 100 kilometers. Among the objectives is also expanding the industrial scope to include a gas pipeline system, a 120 MW power generation station , in addition to subsequent processing units.
Roadmap: Implementation in Two Phases:
Map showing the pipeline route from Ethiopia to ports of Djibouti
The proposed construction framework for the project consists of two main phases, the first of which is from the port of Djibouti to the city of Dawle in eastern Ethiopia, by establishing a pipeline to transport refined petroleum products, with the aim of easing fuel distribution restrictions and meeting the needs of the Ethiopian domestic market; and the second phase is from the fields of the Somali region of Ethiopia through Djibouti to global markets, by establishing a comprehensive export infrastructure that includes pipelines for gas and crude oil, thus consolidating Djibouti’s position as a major transit corridor for hydrocarbon exports.
Strategic shift for the Dangote Group:
These talks mark a milestone in the Dangote Group ’s strategy within Ethiopia, reflecting a gradual shift from being content with traditional investment in the fertilizer sector to a comprehensive “ vertical integration ” phase that combines the use of natural gas, large-scale industrial production, and active contribution to regional energy logistics.