Construction of a new refined petroleum pipeline, known as Horn of Africa Pipeline (HOAP), stretching over 550- Kilometers between Ethiopia and Djibouti will commence in June.
This was announced by the Press Office of the President of Djibouti after discussions had been held by Mr. Ismail Omar Gueleh, President of Djibouti, with the US Assistant Secretary of State on Tuesday.
The US Company Black Rhino Group and Mining Oil and Gas Services (MOGS) have made an agreement to build this 20-inch pipeline worth $1.55 billion to transport petrol, diesel and jet fuel from Damerjog port in Djibouti to Awash terminal in central Ethiopia.
According to 2Merkato, the project will be funded by Black Rhino, an American company that invests in African infrastructure development, which will also include the creation of new oil storage facilities in Djibouti.
The agreement for the construction of the pipeline was signed last year.