PetroChina International is considering an oil export corridor linking South Sudan to Djibouti through Ethiopia, reducing South Sudan’s dependence on pipelines crossing conflict hit Sudan.

The proposal emerged during talks between the Djibouti Ports and Free Zones Authority chairman and a PetroChina International (Middle East) delegation led by Deputy General Manager Hu Weiqiang.

Discussions covered a 300,000-cubic-metre petroleum storage depot at Damerjog Industrial Park, a possible refinery and a 1,550-kilometre transport route. The proposed corridor would traverse terrain reaching 2,400 metres above sea level, with Djibouti’s ports, roads and power infrastructure cited as advantages.

Under the plan, Damerjog Liquid Bulk Port would provide maritime access for South Sudanese crude destined for global markets.

South Sudan relies on pipelines through Sudan to Port Sudan. Fighting in Sudan has repeatedly disrupted oil flows, threatening government revenue in an economy highly dependent on crude exports.

The idea of an alternative route predates the discussions. South Sudan and Djibouti previously signed a memorandum of understanding on a pipeline through Ethiopia, but implementation has advanced slowly.

Djibouti is also expanding its energy infrastructure. 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 International (Middle East), established in 2002, is a PetroChina subsidiary. Its parent group, China National Petroleum Corporation, already holds South Sudanese oil interests through the Dar Petroleum Operating Company venture operating Blocks 3 and 7.

The corridor remains a proposal, with no construction timetable announced.

Source: Capital Ethiopia Newspaper