Sudan – part two

Published November 19th, 2000 - 02:00 GMT

Due in part to the completion of a major pipeline in July 1999, Sudanese crude oil production has risen rapidly over the past year and a half. Also, Sudan became an exporter of refined petroleum products in 2000, following the inauguration of the Khartoum Oil Refinery in June.  

 

Note: Information contained in this report is the best available as of November 2000 and can change.  

 

Refining and Downstream: 

With the June 2000 opening of the 50,000-bbl/d Khartoum Oil Refinery in the Jayli area, 30 miles north of Khartoum, Sudan became self-sufficient in all petroleum products except for jet fuel.  

 

The Khartoum refinery, built and jointly operated by CNPC, produces benzene and butane gas for domestic consumption and export, as well as gasoline for local consumption. A portion of the surplus gas eventually will be used in the production of electricity, according to Khartoum officials.  

 

The Khartoum refinery is expected to save the Sudanese government over $100 million per year in refined petroleum product imports.  

 

Following the opening of the Khartoum refinery, the price of gasoline was reduced considerably throughout the country and the price of gas cylinders, which Sudanese use for cooking, dropped from $5.30 to $2.60.  

 

In August, 2000, the Sudan's National Petroleum Company (NPC) announced plans to lay pipelines to supply Eritrea and Ethiopia with petroleum derivatives from the Khartoum refinery.  

 

If approved, the pipelines would pass through Sudan's Gezira, Sennar and Gedaref states. NPC is also studying the feasibility of running another pipeline to export crude oil from the Adaryel oil fields in southern Sudan to Ethiopia.  

 

Sudan has two other refineries, with the largest in Port Sudan. The Port Sudan facility has a current capacity of 21,700 bbl/d. Sudanese officials announced in July 2000, however, plans to expand the Port Sudan capacity by 70 percent.  

 

A petroleum products pipeline runs from the Port Sudan refinery to Khartoum. A smaller facility located in central Sudan near El Obeid has a capacity of 10,000 bbl/d.  

 

Electricity:  

Sudan currently has installed electric generation capacity of 500 megawatts (MW), managed by the state owned National Electricity Corporation.  

 

Although hydropower accounts for only 45 percent of installed capacity (225 MW), it generated 72 percent of Sudan's electricity in 1997.  

 

The main generating facility is the Roseires dam located on the Blue Nile approximately 500 kilometers (315 miles) southeast of Khartoum. Sudan's total electricity generation was 1.815 billion kilowatt-hours (kwh) in 1998.  

 

Two interconnected electric grids exist -- the Blue Nile grid and the Western grid. Much of Sudan, however, is not served by the electric grids. Some towns outside the two grids are served by their own small-scale diesel-fired plants.  

 

Sudan has plans to add additional generating capacity. On April 29, 1998, Minister of Energy and Mining al-Jaz signed two agreements with NCD of the Netherlands to develop three electric generating facilities. The facilities would have a capacity of 10 MW each.  

 

The largest projects are the proposed Kajbar and Merowe hydroelectric facilities in northern Sudan. The Kajbar Dam, located at the Nile's second cataract, is currently under construction, and will have a 300-MW capacity.  

 

An agreement to finance the Kajbar project was signed between Sudan and China in September 1997. Under terms of the agreement, China is financing 75 percent of the project (approximately $200 million) and Sudan is to provide the remaining 25 percent.  

 

Environmental groups have expressed concern about Kajbar Dam, citing potential damage both to the Nile ecosystem and to the culture of the displaced Nubian residents of the area. The Merowe facility, if it is built, would have a capacity of 1,000 MW, and would be built at the Nile's fourth cataract.  

 

Egypt has not voiced major objections about the issue of Nile water diversion, which Sudan's hydroelectric projects would entail.  

 

Energy Overview:  

Minister of Mines and Energy: Awad Ahmad al-Jaz 

Proven Oil Reserves (1/1/00): 262.1 million barrels 

Oil Production (1999E): 63,250 barrels per day (bbl/d) (Aug. 2000E): 210,000 bbl/d 

Oil Consumption (2000E): 30,000 bbl/d 

Net Oil Exports (2000E): 180,000 bbl/d 

Natural Gas Reserves (1/1/00): 3 trillion cubic feet (tcf) 

Natural Gas Production (1998E): None 

Natural Gas Consumption (1998E): None 

Electric Generation Capacity (1998E): 500 megawatts ( 45% hydro; 55% thermal) 

Electricity Generation (1998E): 1.815 billion kilowatt-hours (kwh) 

Electricity Consumption (1998E): 1.688 billion kwh 

 

Oil & Gas Industries: 

Major Oil Fields (Production - bbl/d, Aug. 2000): Adar (10,000), Heglig/Unity (200,000) 

Oil Refineries (Capacity - bbl/d): Khartoum (50,000 bbl/d), Port Sudan (21,700 bbl/d), El Obeid (10,000 bbl/d) 

Major Foreign Oil Company Involvement: Agip, China National Petroleum Corp. (CNPC), Gulf Petroleum Corp. (GPC), Lundin Oil Corp., Exxon Mobil, National Iranian Gas Company (NIGC), OMV, Petronas, Royal Dutch/Shell, Talisman Energy, TotalFina Elf, Trafigura Beheer B.V. 

Source : United States Energy Information Administration. 

 

 

© 2000 Mena Report (www.menareport.com)

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