Ethiopia has announced plans to construct its 14th oil depot. EPSE, the Ethiopian Petroleum Supply Enterprise revealed the plans and said the move is towards enhancing the nation’s oil infrastructure.
The development will be set up in Dire Dawa with a planned substantial capacity of 300 million liters spread across 16,000 square meters. The Dire Dawa depot is strategically located to serve as a central hub for receiving oil shipments from Djibouti and subsequently distributing them throughout Ethiopia. This centralized approach is expected to streamline operational activities and improve efficiency in oil distribution nationwide.
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EPSE
EPSE, functioning as both the government’s development arm and the sole provider of fuel, operates under the oversight of Ethiopian Investment Holdings. This strategic positioning allows EPSE to play a pivotal role in meeting the growing national demand for oil products. As the demand for oil increases, there is a pressing need to expand infrastructure across various sectors, including terminals, storage tank farms, pipelines, and logistical facilities.
To facilitate the expansion and operation of the Dire Dawa depot, Ethiopian Investment Holdings has entered into a Memorandum of Understanding with AD port, indicating a collaborative effort to implement the project. Once the necessary land handover formalities are completed within the stipulated two years, the depot is poised to effectively double the country’s oil storage capacity.
EPSE, with a rich history dating back to its establishment in 1967, has consistently upheld its core mission of supplying refined oil products across Ethiopia. Given Ethiopia’s landlocked status, EPSE has traditionally procured oil products primarily through Djibouti. Additionally, EPSE has forged strategic partnerships with international entities such as Kuwait Petroleum Cooperative and Sudan Petroleum Corporation, leveraging the Dire Dawa depot for efficient distribution.