China eyes new pipeline to revive South Sudan’s Oil exports amid regional conflict

China’s state-owned China National Petroleum Corporation (CNPC) has unveiled plans to construct a new oil pipeline in South Sudan, aiming to replace an existing line damaged by conflict in neighboring Sudan.

Announced by the South Sudanese presidency on September 4, the proposed pipeline would traverse Djibouti and Ethiopia, offering a strategic route to export South Sudan’s crude oil, bypassing the unstable areas of northern Sudan.

The CNPC, which already holds a 41% stake in Dar Petroleum Operating Company, South Sudan’s largest oil producer, seeks to revitalize the country’s flagging oil industry.

The conflict between Sudanese generals Abdel Fattah Al-Burhan and Mohammed Hamdan Daglo has severely disrupted oil production, leading to a significant decline in output—a critical blow to South Sudan, whose economy heavily relies on petroleum exports.

Economic Lifeline Amid Turmoil

For South Sudan, the new pipeline project is not just about infrastructure; it represents a crucial lifeline for the nation’s struggling economy.

Since gaining independence in 2011, South Sudan has been plagued by civil war and political instability, which have stymied its ability to fully exploit its rich oil reserves.

The ongoing conflict in Sudan has further exacerbated these challenges, particularly after the severing of a vital pipeline that connected South Sudan’s oil fields to the port of Port Sudan.

With CNPC’s proposed pipeline, South Sudan hopes to mitigate these risks by establishing a safer and more reliable export route.

This initiative would not only secure the flow of oil but also provide a much-needed boost to the country’s oil industry, which has seen production plummet due to the prolonged instability.

China’s Strategic Play in African Oil

China’s involvement in South Sudan’s oil sector underscores its broader strategy in Africa, where it has become a dominant player by investing heavily in infrastructure and energy projects.

CNPC’s new pipeline could significantly enhance the export capabilities of South Sudan, potentially attracting more foreign investment to the oil-dependent nation.

Speaking at the Forum on China-Africa Cooperation (FOCAC), South Sudanese President Salva Kiir emphasized the strategic importance of the project, calling it a critical step towards revitalizing the local oil industry.

“This pipeline is not just about securing our oil exports; it is about securing our future,” Kiir stated, highlighting the potential of the project to stabilize the economy and attract new investors.

As the conflict in Sudan shows no signs of abating, South Sudan’s partnership with China offers a glimmer of hope for a nation eager to rebuild and harness its natural resources.

The proposed pipeline, if realized, could reshape the economic landscape of South Sudan, allowing it to regain its footing in the global oil market despite the challenges posed by regional instability.