Black Rhino and MOGS Services get official green light for $1.55bn Horn of Africa fuel pipeline project


Published: Wednesday, 30 September 2015 15:42

Energy infrastructure companies Black Rhino and MOGS Services (BRM), together with the Governments of Djibouti and Ethiopia today signed Framework Agreements for the construction of a 550km fuel pipeline system running through Djibouti and Ethiopia in the Horn of Africa. The $1.55bn multi-product pipeline will transport diesel, gasoline and jet fuel from Damerjog, Djibouti to Awash in central Ethiopia. Deemed a critical infrastructure project, the project will support economic growth across the region.

Commenting on the development, Black Rhino CEO Brian Herlihy said, “We are pleased to be working in partnership with the Governments of Ethiopia and Djibouti on this important project, which will be transformative for the region. The pipeline will increase energy security, aid economic development and reduce harmful emissions.”

Scheduled for completion in 2018, the development is expected to increase the efficiency and safety of Ethiopia’s fuel import supply chain by aiding in the reduction of fuel transportation costs, increasing scalability of fuel imports and significantly decreasing the carbon output from importing fuel. The project will also reinforce Djibouti as a regional shipping hub by expanding the port’s capacity

“The Horn of Africa project will sustain the momentum of economic growth and growing fuel demand in both Djibouti and Ethiopia by enabling high-quality, consistent energy supply at reasonable cost points for the two regions”, concluded MOGS Oil & Gas Services CEO, Errol Gregor.

Notes to Editors
About BRM
BRM is a joint venture between Black Rhino and MOGS Oil & Gas Services. African based Black Rhino, owned by funds managed by investment firm Blackstone, is an infrastructure development company focused on large-scale power generation and oil and gas infrastructure projects. MOGS Oil & Gas Services focuses on investment in the construction and operation of oil and gas infrastructure, and provides associated services. MOGS Oil & Gas Services is a wholly owned subsidiary of Royal Bafokeng Holdings.