South Sudan Oil and Gas Downstream Market - Growth, Trends, and Forecasts (2020 - 2025)

The South Sudan oil and gas downstream market is expected to grow at a CAGR of more than 5.6% during the forecast period of 2020-2025. Reducing dependency on imported refined petroleum products coupled with the rise in population is expected to drive the South Sudan oil and gas downstream market during the forecast period. However, low investor confidence and the unreliable security situation in South Sudan are expected to hinder the market growth during the forecast period.

• South Sudan’s refining sector is expected to have significant growth in the market during the forecast period, on account of increasing demand for refined products.
• The opportunities in South Sudan are vast and lucrative. South Sudan is largely underdeveloped and direly needs economic development. Investors coming to South Sudan are expected to benefit from the resources and opportunities available. The country is also planning on the expansion of its downstream markets, such as strategic fuel supply, and distribution and refineries companies. This, in turn, is expected to create a significant opportunity for the payers involved in the market in the near future.

Key Market Trends

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.

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.

Competitive Landscape

The South Sudan oil and gas downstream market is consolidated. The major player in this market includes Nile Petroleum Corporation.

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