Protests push Sudan to brink of fuel shortage

Market: Oil products
10/10/21

Sudan's government says it could soon face serious fuel supply issues if an agreement with tribal protesters in the east is not reached in the upcoming days.

Protesters affiliated with the Beja Congress political group began blocking roads as well as pipelines — one that pumps crude oil from South Sudan to the Port Sudan terminal on the Red Sea, and a second that brings imported petroleum products from the terminal into the country — in the middle of September over objections with elements of a peace agreement that Khartoum reached with rebel groups last year.

The Sudanese government reached a deal with the protesters on 27 September to allow for the resumption of crude exports from South Sudan, but imports of oil products like gasoil, fuel oil and gasoline from the terminal remained blocked.

At least two vessels carrying gasoil have been circling around Port Sudan since the protests started, according to Vortexa. The Tintomara, which is carrying 13,500t of gasoil (105,000 bbl) from the UAE's Hamriyah arrived at Port Sudan on 15 September. A second vessel, the Jag Pushpa, which loaded 41,500t of gasoil at Saudi Arbia's Jubail on 27 September first approached Port Sudan on 30 September, but has also been circling off Port Sudan since after not being able to discharge its cargo.

Previously vessels were able to discharge fuel in Sudanese ports, despite the unrest, a source close to the matter told Argus. But now, with storage facilities already full, this is causing a backlog of vessels.

Sudan is now having to rely on fuel supplies from the country's sole 100,000 b/d Khartoum refinery, the source said. But with the refinery only able to cover 60pc of country's fuel requirements, the government said that the situation could escalate significantly if a solution is not reached in the coming days.

If not resolved quickly, this situation will not only result in fuel shortages across the country, but also become "a burden" on the country's budget as the debts to vessels unable to discharge accumulate, Sudan's minister of cabinet affairs Khalid Omer Yousif said yesterday.

By Ieva Paldaviciute and Nader Itayim

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