Sudan Signs Agreement with Russian Company on Gas Liquefaction

Posted on : Monday, 5th October 2015

The Ministry of oil in Sudan signed a $70 million agreement on Sunday with Russia’s Gazohim Techno for liquefaction of gas produced at Neem field in the west of the country using a process known as gas-to-liquids (GTL).

Under the agreement a plant will be constructed to liquefy gas with a capacity of processing 10 million cubic feet of gas per day and convert to petroleum products such as gasoline and diesel at an estimated rate of 100 million tons of fuel per year.

Sudapet will own 51% of the plant and the remaining 49% will be held by the Russian company. The project will be implemented within 18 months.

The Sudanese minister of oil Mohamed Awad Zayed said during the signing ceremony that the project is economically rewarding, and provides quantities of gas that could be used to generate electricity in addition to gasoline.

Zayed said the project saves the government $10 million a month and helps enhance the economics of oil.

The head of the Russian company for his part emphasized the economic benefits of the project, stressing that it will be handled according to the highest quality standards in petroleum products.

He pledged to work on continuous process improvement and the introduction of modern technologies in addition to training national personnel.