Somaliland opens new oil storage terminal

Somaliland has opened a new oil storage terminal set to serve the Horn of Africa region. President Muse Bihi performed the launch ceremony on terminal that is set to be a hub for both local and foreign investment.

The dubbed Dahabshiil Oil Storage Terminal (DOST) in Berbera serves as a vital facility for unloading oil and gas at the National Port of Berbera. It is described as a testament to innovation, cooperation, and the shared vision between the Dahabshiil Group, government leaders, and the community. This collaboration is seen as a driving force behind the project’s success.

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Dahabshiil Oil Storage Terminal

The Dahabshiil Group, along with its partners, invested over US $100M in the project. This private sector investment underscores the role of businesses in driving impactful projects and contributing to economic development in the region.

This terminal is designed to meet international standards for liquids and gases and has received certifications for its quality from various international firms. It boasts state-of-the-art facilities, including a modern fuel offshore terminal with the capacity to import and export fuel products. It can accommodate up to eight tankers per month, demonstrating its operational capacity.

The DOST terminal is intended to grow in phases, with plans to include new large tanks in addition to the existing ones. This expansion is expected to increase the total storage capacity to 110,000 cubic meters or 110 million liters. Additionally, there are plans to establish an LPG terminal with a capacity of 12,000 cubic meters.

The adoption of LPG is expected to have a positive environmental impact by reducing deforestation and combating climate change, which has contributed to issues like drought and famine in the region.

The DOST Terminal is not only expected to benefit Somaliland but also the broader region, including Ethiopia and the Horn of Africa. It offers an alternative pathway for fuel importation, addressing congestion issues at regional ports.

The advanced infrastructure of the terminal, along with the establishment of new industries, is projected to stimulate economic opportunities, lower living costs associated with energy expenses, and create job opportunities in the region.