Nigerian billionaire Aliko Dangote, Ethiopia and Djibouti are set to develop a $660m refined petroleum products pipeline linking the two East African countries.

A spokesperson in the office of Ethiopian Prime Minister Abiy Ahmed disclosed this to Reuters on Thursday.

The project will include a 120-kilometre pipeline and storage facilities with a combined capacity of about 1.175 million cubic metres in Djibouti and Ethiopia.

The spokesperson said the pipeline is expected to become operational within 18 months.

Abiy said on X that the project would be developed through a partnership between Ethiopian Investment Holdings and Dangote Group.

The pipeline is expected to run between Damerjog in Djibouti and Dewele in Ethiopia. Damerjog will have about 375,000 cubic metres of storage capacity, while Dewele will have about 800,000 cubic metres.

The report said, according to Abiy, the project “aims to reduce logistics costs and delays along the Ethiopia-Djibouti transport corridor. Developers say the infrastructure will strengthen energy security and improve supply chain resilience for the two countries.”

Abiy made the announcement during a visit to Djibouti, alongside Djiboutian President Ismail Omar Guelleh and Dangote.

Dangote Group is already involved in several projects in Ethiopia, including a $4bn fertiliser pipeline and power plant, as well as a polypropylene packaging facility.

Meanwhile, Dangote and the Kenyan government are expected to break ground next week on a new 700,000-barrel-per-day crude oil refinery in Lamu.

The refinery project is another expansion of Dangote’s energy interests in East Africa.