A Blackstone vehicle has been given the green light for a $1.5bn (€1.3bn) African gas pipe.

The Black Rhino and MOGS Oil & Gas Services (BRM) joint venture will develop the 550km pipeline with the governments of Djibouti and Ethiopia.

Black Rhino, owned by funds managed by Blackstone, develops 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.

The multi-product pipeline will transport diesel, gasoline and jet fuel from Damerjog, Djibouti to Awash in central Ethiopia.

Black Rhino chief executive Brian Herlihy said the pipeline would increase energy security, aid economic development and reduce harmful emissions.

The project, due for completion in 2018, is expected to increase the efficiency and safety of Ethiopia’s fuel import supply chain by cutting fuel-transportation costs and decreasing the carbon output from importing fuel.