Sources close to The Reporter say that the Ethiopian Oil and Petroleum Cooperation is discussing a plan to setup an oil refinery near the Ethiopian border with Djibouti. According to reports, the Djibouti government will install a pipeline from country’s center to its border with Ethiopia. The Djibouti government is researching the groundwork for installation with the help of Russian experts. Ethiopia will build the pipeline from the border to its center.

Ethiopia currently imports over 1.5 million tons of fuel and spends over two billion USD a year. Importing crude oil and refining it in Ethiopia will reduce the country’s foreign currency spending and help the country produce petroleum products such as asphalt.

Ethiopia previously used the Asab Refinery, now located in Eritrea, for many decades. After the refinery service charges skyrocketed, Ethiopia imported refined fuel instead of refining the crude oil at Asab.

EthiopianReporter