Dangote Industries Plans Massive Cross-Border Pipeline Expansion Across Africa

Dangote Industries is set to begin construction next week on a natural gas and petroleum pipeline linking Djibouti and Ethiopia as part of an ambitious strategy to build nearly 4,000 kilometers of pipeline infrastructure across the continent, Nigerian billionaire Aliko Dangote announced.

Speaking during an interview in Qatar, Dangote revealed his firm is also developing a separate 2,650-kilometer pipeline connecting Namibia, Botswana, and South Africa, alongside associated tank farms and storage facilities.

"By the time we finish, I am sure we'll end up with almost 4,000 kilometers of pipelines," Dangote said. He noted that the budget for the southern African corridor alone exceeds $3.5 billion.

The expansion aims to shift fuel distribution away from costly, logistically complex road transport.

Beyond regional land transport, the company is preparing to launch a 600-kilometer offshore gas-gathering pipeline in Nigeria to feed its industrial complex in Lagos.

Devakumar Edwin, Dangote Industries’ group vice president for oil, gas, and fertilizer, confirmed that engineering designs for the subsea pipeline are complete, with construction expected to start shortly.

The offshore line will allow stranded gas producers to tap directly into shore-based processing facilities.

"When we strike a gas well, if it is full of gas, we just cap the well and sit on it," Edwin said during a facility tour in Lagos, emphasizing that the new network will address Nigeria's critical infrastructure deficit.

The pipeline initiatives anchor the conglomerate’s Vision 2030 strategy, which includes expanding its Lagos refinery capacity from 700,000 to 1.4 million barrels per day within three years and scaling fertilizer output fourfold to 12 million tonnes annually.

To help finance its regional expansion and shore up capital, Dangote Petroleum Refinery and Petrochemicals is currently seeking to raise approximately 2.15 trillion naira ($1.62 billion) through an initial public offering.

The Dangote Industries is also in talks with the Kenyan government to build 800-kilometer-long oil pipeline from Turkana to the Lamu port, expanding the number of the conglomerate’s project across Africa.