Economy

PetroChina Explores South Sudan-Ethiopia-Djibouti Oil Corridor

AI SUMMARY

PetroChina International is exploring an oil export corridor linking South Sudan to Djibouti through Ethiopia to bypass conflict-hit Sudan.

PetroChina International is considering an oil export corridor linking South Sudan to Djibouti through Ethiopia to reduce reliance on pipelines crossing conflict-hit Sudan.
The proposal was discussed in talks between the Djibouti Ports and Free Zones Authority chairman and a PetroChina International delegation led by Deputy General Manager Hu Weiqiang.
The proposed project covers a 300,000-cubic-metre petroleum storage depot at Damerjog Industrial Park, a potential refinery, and a 1,550-kilometre transport route.
The route would traverse terrain reaching 2,400 metres above sea level, utilizing Djibouti's ports, roads, and power infrastructure.
Damerjog Liquid Bulk Port would provide maritime access for South Sudanese crude destined for global markets.
Ongoing fighting in Sudan has repeatedly disrupted oil flows from South Sudan, threatening government revenue in an economy dependent on crude exports.
South Sudan and Djibouti previously signed a memorandum of understanding on an Ethiopia pipeline, but implementation has been slow.
Dangote Industries is developing a 375,000-cubic-metre petroleum storage terminal at Damerjog as part of a USD 660 million Djibouti-Ethiopia pipeline project connecting the port area with Dewele.
PetroChina's parent company, China National Petroleum Corporation, already holds South Sudanese oil interests through the Dar Petroleum Operating Company operating Blocks 3 and 7.
The corridor remains a proposal with no construction timetable announced.