Djibouti Awaits Ethiopian Funding to Activate New Fuel Import Corridor

June 2, 2026

Mintesinot Nigussie

A new fuel import facility being developed on Djibouti’s southeastern coast will remain idle until Ethiopia moves ahead with plans to finance and develop large-scale fuel storage infrastructure linked to the project, according to officials overseeing the port development.

The offshore jetty at the Damerjog Liquid Bulk Port has reached the final stages of construction, but operations cannot begin without the accompanying onshore terminal and storage farm intended to handle Ethiopian fuel imports.

Aboubaker Hadi Omar, chairman of the Djibouti Ports and Free Zones Authority (DPFZA), said negotiations are continuing with Ethiopian Investment Holdings (EIH) over the proposed investment. He said authorities expect financing discussions to advance around the beginning of the coming budget year in July.

The terminal sits near the border with Somaliland and roughly 13 kilometres from the Ethio-Djibouti railway network. Moroccan contractor SOMAGEC carried out installation works on the offshore jetty, which extends around three kilometres into the sea.

Djibouti authorities say the facility is designed to handle fuel volumes far beyond the capacity of the existing infrastructure currently serving Ethiopia. The new jetty is projected to process 25 million tonnes annually and accommodate up to 12 vessel rotations.

The project also includes plans for multiple storage installations with a combined static capacity of nearly two million cubic metres.