UAE set to build oil pipeline between Ethiopia, Eritrea

The UAE will reportedly build an oil pipeline connecting Ethiopia to the Eritrean port of Assab

The UAE may build an oil pipeline between Ethiopia and Eritrea.
The UAE may build an oil pipeline between Ethiopia and Eritrea.

The UAE is reportedly set to build an oil pipeline connecting Eritrea’s port city of Assab with the capital city of Ethiopia, Addis Ababa.

State-affiliated Ethiopian news service Fana Broadcasting Corporate first reported news of the pipeline project, which was quickly picked up by Construction Week's sister title Arabian Business, as well as Gulf News. 

An agreement to build the oil pipeline is believed to have been made during a meeting between Reem bint Ibrahim Al Hashemy, UAE Minister of State for International Cooperation, and Ethiopian Prime Minister Abiy Ahmed in August. 

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The pair also agreed to work together on projects spanning energy, infrastructure, investment, and aviation, according to WAM, which did not report on the pipeline.

They also discussed how the two countries could move forwards on other bilateral agreements, including an accord on the development of real estate and resorts.

Further construction details on the pipeline project were not disclosed. 

News of the project, however, came several months after Abu Dhabi National Oil Company (ADNOC), Saudi Aramco, and a three-strong consortium of Indian petrochemical players signed an agreement to build a $44bn mega refinery in Ratnagiri, located on India’s west coast.

A new joint venture (JV) company called Ratnagiri Refining and Petrochemical Company was created following the agreement.

ADNOC and Saudi Aramco will share a 50% stake in the new JV, while the trio of Indian oil players – Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation – will share the other 50% stake in the business.


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