Fuelstor Launches USD 160 Million Energy Hub in Djibouti, Eyes Ethiopian Market

EBR_ News May 12, 2026

Fuelstor has officially begun construction of a $160 million multi‑product terminal in Damerjog, Djibouti, a strategic energy hub designed to strengthen fuel, LPG, and edible oil supply chains for Ethiopia and the wider East African region.

The groundbreaking ceremony, held on May 12, brought together senior government officials and industry leaders. The terminal, covering nearly 22 hectares, will have a storage capacity of 400,000 metric tons and is being developed by Somagec, an internationally recognised engineering group.

Fuelstor General Manager Houssein Ahmed Houmed said the project positions Djibouti as a critical gateway connecting global supply markets to growing regional demand. The facility will enable seamless multimodal access to Ethiopia, which relies on Djibouti’s ports for the vast majority of its fuel imports.

According to the company, the terminal is being developed with multimodal access specifically anchored toward Ethiopia and neighboring regional markets, reflecting the growing interdependence between Djibouti’s port infrastructure and Ethiopia’s expanding demand for fuel and trade logistics services.

Backed by the Salaam Group, the terminal is expected to create hundreds of jobs during construction and operations, while reinforcing Djibouti’s role as a stable trade corridor linking Africa to international markets.