Ethiopia Considering Building Oil Terminal in Djibouti
July 7, 2018 - Due to capacity limitations at the port of Djibouti to handle Ethiopia's increasing fuel needs, the Ethiopian government has started planning to build an oil terminal at the port of Djibouti, according to the Reporter.
CEO of the Ethiopian Petroleum Supply Enterprise, Tadesse Hailemariam, told The Reporter “We are having a tough time at the Horizon Terminal due to capacity limitations. The terminal is now unable to accommodate the increasing petroleum imports. We are suffering.”
The Djibouti Horizon Fuel terminal tank farm has a total of 31 tanks with a storage capacity of 300,000cu.m of petroleum products. The terminal has various tanks for gasoline (benzene), gas oil (diesel), kerosene and jet fuel. DHT Company has allocated half of the tank farm more than 150,000 cu.m of petroleum storage capacity for Ethiopia. EPSE uses the facility to store 72,000cu.m of diesel, 70,000cu.m jet fuel, gasoline 10,000cu.m and 10,000cum fuel oil. “But this is now not enough for us to handle the growing petroleum imports,” Tadesse said.
The military strength including the US, France and China have military bases that consumes large amount of fuel for their aircraft and naval ships. The military bases use DHT to satisfy their petroleum demands.
According to Tadesse, the Ethiopian government is now planning to jointly develop a new oil terminal with the government of Djibouti. The planned tank farm will have the capacity to store 30,000cu.m of petroleum products and a JT pipe that receives oil from tanker vessels. Preliminary study undertaken by ESPE indicates that the planned oil terminal could cost to the tune of USD 220 million.