The Horn of Africa Pipeline is a ~550 km multiproduct fuel pipeline project, aimed at supplying Ethiopian jet fuel, diesel and gasoline demand.
The Pipeline will transport refined oil products from the Port of Djibouti to storage facilities in Awash, Ethiopia (near Addis Ababa).
Currently, Ethiopia imports fuel through the Port of Djibouti. Tanker trucks transport jet fuel, diesel and gasoline from the Port of Djibouti into Ethiopia. 500 trucks per day transport fuel to the load-center in the greater Addis Ababa area, travelling ~800 km of narrow two lane road.
Ethiopia’s demand for refined oil products is growing at a rate >15% year on year. If compared to historically similar countries in a similar development path, Ethiopia’s demand for fuel will continue to increase at approximately 20% annually.
The Project will expand import efficiencies and capacities, immediately unlocking GDP growth potential by filling nascent demand, and providing the country’s cheapest option for fuel transportation.
The current fuel transportation system is reaching the upper limits of its capacity, and a purely trucking scheme will not be able to logistically meet Ethiopia’s demand requirements. Trucking fuel will reach its ceiling, and start curbing Ethiopia’s economic growth within the next two years. The trucking system causes issues with adulteration and theft of product in transit and road conditions.
Black Rhino has developed the Horn of Africa Pipeline Project in joint-venture with MOGS, a wholly owned subsidiary of Royal Bafokeng Holdings. The Horn of Africa Pipeline JV has developed this Project from the concept stage, and upon completion the Project will represent an investment of $1.55 bn. The Pipeline is expected to be fully operational by Q4 2018.
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