Delivering critical 550km fuel pipeline project in the Horn of Africa

Cari Drysdale

Associate Director

We have won the contract to project manage the construction of a major 550 kilometer pipeline, that will transport jet fuel, diesel and gasoline from the port of Djibouti to central Ethiopia.

Known as the Horn of Africa Pipeline, it will cost US$1.55 billion to build and is being developed by Black Rhino MOGS, a joint venture between the infrastructure investment company Black Rhino Group and South African-based Mining, Oil & Gas Services Ltd.

We will be providing full project controls services including: estimating, cost, schedule, risk and change management, performance measurement, reporting and document control, in addition to contracts administration and procurement management.

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

The project 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, near the Ethiopian capital Addis Ababa.

The 20-inch (51-centimetre) steel pipeline will be capable of transporting more than 240,000 barrels of fuel daily, greatly easing the pressure on the current route – which requires 500 tanker trucks per day to travel along an 800 kilometre, narrow two-lane highway.

We have also been working closely with the Black Rhino Group to help its due diligence process on several other projects in Africa, including Nigeria.

Mark Haselau, Director commented:

“We’ve been guiding and supporting Black Rhino MOGS on this critically important project since its inception. As this is a cost-driven project, the developers require an end-to-end solution delivered on time and on budget.

“The challenge lies in overcoming the logistical, infrastructural and regulatory issues presented on the African continent – including the physical importation and transportation of materials to the many sites and laydown areas along the pipeline’s route.

“However, once completed the project will play an essential role in meeting the rising demand for fuel from Ethiopia’s fast-growing economy – as well as increasing energy security and reducing harmful emissions across the region.”