South Sudan, one of Africa’s oil-rich nations, has historically supplied its crude oil to the global market via Sudan.
However, the ongoing civil war in Sudan between the Sudanese national army and the Rapid Support Forces (RSF) has severely disrupted the oil transmission route to Port Sudan.
The conflict has resulted in significant damage to the oil pipeline, leaving South Sudan seeking alternative routes to maintain its vital oil exports.
In response, South Sudan is now planning to build a new oil pipeline that will pass through Ethiopia and extend to the Port of Djibouti, securing its access to international markets.
During the recent China-Africa Summit, South Sudanese President Salva Kiir Mayardit highlighted the importance of this new route and discussed the plan with Chinese officials.
According to the South Sudan Broadcastic corporation (SSBC), President Kiir met with Dai Houliang, the chairman of the China National Petroleum Corporation (CNPC), in Beijing.
During the meeting, the two sides agreed on the construction of the oil pipeline, which will run from South Sudan through Ethiopia to the Port of Djibouti.
CNPC has committed to leading the project, with an emphasis on ensuring the safety of workers during the construction phase.
The agreement between South Sudan and China extends beyond the mere construction of the pipeline. It also encompasses efforts to explore and develop new oil fields in South Sudan, further enhancing the country’s oil production capacity.
Oil exports account for approximately 90 percent of South Sudan’s economy, making the civil war in Sudan a major economic threat.
The disruption of the existing pipeline has inflicted significant financial losses on the country, further underscoring the importance of the new pipeline route.
Ethiopia and Djibouti have not yet officially responded to the recently announced agreement between South Sudan and the China National Petroleum Corporation (CNPC) regarding the construction of a new crude oil pipeline.
This infrastructure project is expected to transport oil from South Sudan through Ethiopia to the Port of Djibouti, offering a crucial alternative route for South Sudan’s oil exports, which have been disrupted due to the ongoing civil war in Sudan.
Furthermore, the total cost of the ambitious project remains undisclosed. While the agreement marks a significant step towards securing South Sudan’s oil export future, details regarding the financial aspects of the pipeline construction, including investment from China and potential contributions from Ethiopia and Djibouti, have yet to be made public.
Five months ago, President Kiir signed a road infrastructure agreement with Ethiopia during a state visit to Addis Ababa. Under this agreement, a 220-kilometer road will be constructed to connect South Sudan with Ethiopia.
Ethiopia has committed to providing a $738 million loan to South Sudan to cover the construction costs, further strengthening the bilateral ties between the two nations.
