Black Rhino Group says Ethiopia-Djibouti fuel pipeline project is feasible

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Black Rhino Group says Ethiopia-Djibouti fuel pipeline project is feasible

Black Rhino Group, a firm backed by Blackstone Group, has proposed to the Ethiopian government to build a 550 km multi-product pipeline from the port access in Djibouti to central Ethiopia.

According to a feasibility study developed by the firm, the project is viable and the government of Ethiopia has reviewed and accepted the proposal.

As we reported on IPP Journal, the 50-50 joint venture between the energy companies Black Rhino and MOGS Oil & Gas Services (BRM), along with the Governments of Djibouti and Ethiopia signed Framework Agreements for the construction of the pipeline system in The Horn of Africa in October 2015.

The US$1.5 billion multi-product pipeline will transport diesel, gasoline and jet fuel from Damerjog, Djibouti to Awash in central Ethiopia. The 51 centimeter diameter line will have a transportation capacity of 240,000 barrels of fuel per day.

The project will be developed on a build-operate-transfer (BOT) basis, the facility will be operated for 30 years and then transferred to the Ethiopian government.

A senior official at the Ethiopia Ministry of Transport, said:

"It is too early to start the construction. However, Black Rhino has finalized the feasibility study and it has been confirmed that the project is feasible. They are now working on the implementation study. The company will present the final feasibility study to the Ethiopian government which will review the study and give the green light to proceed with the project.”

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