Energy infrastructure companies Black Rhino and Mogs Oil & Gas Services, have together with the governments of Djibouti and Ethiopia, signed framework agreements for the construction of a $1.55-billion 550 km fuel pipeline system running through the two countries.

The multiproduct pipeline will transport diesel, gasoline and jet fuel from Damerjog, Djibouti, to Awash, in central Ethiopia, as well as supporting economic growth across the region. “We are pleased to be working in a partnership that will be transformative for the region. The pipeline will increase energy security, aid economic development and reduce harmful emissions,” Black Rhino CEO Brian Herlihy told Engineeringnews.

Scheduled for completion in 2018, the development was projected to boost 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 would also reinforce Djibouti as a regional shipping hub by expanding the port’s capacity.

“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,” Mogs Oil & Gas Services CEO Errol Gregor stated.