Framework agreement inked for Horn of Africa multiproduct fuel line

Partners have signed a framework agreement for the construction of a 550-km, 240,000-b/d pipeline that will transport jet fuel, diesel, and gasoline from the port of Djibouti on the Gulf of Aden to storage facilities in Awash, near the capital city of Addis Ababa in central Ethiopia.

Known as the Horn of Africa Pipeline, the system will cost $1.55 billion to build, partners say, and will ease pressure on the landlocked nation’s current supply route, which requires the daily use of 500 tanker trucks.

The Horn of Africa system is being developed by Black Rhino MOGS, a joint venture of investment company Black Rhino Group and South Africa-based Mining, Oil & Gas Services Ltd. (MOGS), itself a wholly owned subsidiary of Royal Bafokeng Holdings. Global consultancy Turner & Townsend was let the contract to product-manage the line’s construction.

The project is currently in the set-up phase, with detailed design and procurement due to take place over the coming months.

The project, which will use 20-in. steel pipeline, includes the creation of an import facility and a buffer storage tank farm in Damerjog, Djibouti, which will be linked to a storage terminal and truck-loading facility in Awash.

Ethiopia’s demand for refined oil products is rising at a rate of more than 15% year-on-year. Compared to historically similar countries in a similar development path, Ethiopia’s demand for fuel is projected to rise at about 20%/year.

The Horn of Africa line is expected to be fully operational by fourth-quarter 2018.

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