Market Trends of South Sudan Oil and Gas Downstream Industry
This section covers the major market trends shaping the South Sudan Oil & Gas Downstream Market according to our research experts:
Refining Sector is Expected to Witness Significant Growth
- The downstream oil and gas industry in South Sudan is an important sector in the country's economy since most of the country's export earnings are spent on imported refined products. The South Sudan oil and gas industry is regulated and monitored by the Ministry of Petroleum through the Petroleum Exploration and Production Authority.
- South Sudan has no domestic refining capacity so it must rely on imported petroleum products to meet domestic demand. In order to reduce the reliance on imports, the South Sudanese government accelerated the development of two refineries in Bentiu (5 thousand b/d) and Tangrial (10 thousand b/d); however, the poor security environment has suspended the development of Tangrial refinery infrastructure in 2019.
- South Sudan is inviting international and local investors to participate in refinery projects developed on a PPP basis. Proposed refineries in South Sudan are Akon with refining capacity 50 thousand barrels per day and Gameza with a refining capacity of 100 thousand barrels per day.
- As of 2019, South Sudan reached oil production of 139 thousand billion barrels daily with growth rate of 8.7%. Hence, an increased production is expected to proliferate the growth of the South Sudan oil and gas refining market during the forecast period.
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Increasing Demand for Petroleum Products is Expected to Drive the Market
- Petroleum includes refined petroleum products such as gasoline, diesel fuel, jet fuel, unfinished oils, and other liquids such as fuel ethanol, blending components for gasoline, and other refinery inputs.
- Domestic consumption of petroleum products grew rapidly with increased industrialization, car ownership, and population. As of July 3, 2020, the population of South Sudan reached 11,194,026 with a growth rate of 1.1%.
- South Sudan has a substantial amount of proven oil reserves. In 2019, the country had total proven oil reserves of about 3.5 thousand million barrels. With the proposed and under construction refineries in South Sudan, the crude oil produced can be refined in the country itself so as to meet the rise in demand for refined petroleum products.
- Therefore, factors such as increasing demand for petroleum products and the improvement in downstream infrastructure are expected to drive the oil & gas downstream market in South Sudan.
