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Diesel/Gasoline

Fuelstor Launches $160 Million Djibouti Hub for East African Fuel Security

May 14, 2026
Fuelstor Launches $160 Million Djibouti Hub for East African Fuel Security


• $160 million Fuelstor Terminal has started construction in Djibouti’s Damerjog corridor.
• 400,000 metric tonnes of storage capacity will support petroleum, LPG, edible oil and other commodities.
• Salaam Group backs the terminal, with Somagec undertaking construction.
• Ethiopia is a central target market, with Djibouti handling over 90 percent of its trade.
• Fuelstor plans multimodal distribution through port, road and regional trade corridor connections.
• East Africa consumes an estimated 350,000–400,000 barrels of petroleum products daily.
• Djibouti’s investment raises competition with Kenya and Tanzania over regional fuel infrastructure.

Market Impact:
Fuelstor’s terminal strengthens Djibouti’s role as a storage and redistribution platform for East African energy markets. The project is positioned around fuel security, import dependence and regional supply-chain resilience.

For Ethiopia, the investment matters because Djibouti remains its primary maritime gateway. Additional storage capacity in the Damerjog corridor could affect fuel, LPG and edible oil logistics serving Ethiopian and wider hinterland markets.

The project also signals rising competition among Djibouti, Kenya and Tanzania to control fuel infrastructure, trade corridors and energy redistribution across East Africa. 

Key Numbers:

  • $160 million — Fuelstor Terminal investment — major regional energy infrastructure project

  • 400,000 metric tonnes — planned storage capacity — supports petroleum, LPG and edible oil flows

  • 22 hectares — project site size — scale of Damerjog terminal development

  • Over 90 percent — Ethiopia’s trade handled through Djibouti — corridor relevance for Ethiopian logistics

  • 350,000–400,000 barrels daily — East African petroleum consumption — scale of regional demand

Business Signal:
Djibouti is using storage infrastructure and corridor access to deepen its role in East Africa’s fuel security and commodity logistics.