The Sudan Sea Ports Corporation and Türkiye’s Argaz Company have signed a Memorandum of Understanding (MoU) to construct the first dedicated liquefied petroleum gas (LPG) terminal at Suakin Port under the Build-Operate-Transfer (BOT) model.
The strategic project, the first of its kind in Sudan, involves the construction of a modern berth capable of accommodating three vessels simultaneously, in addition to specialized gas storage facilities. The project aims to secure Sudan’s domestic gas supply, reduce import costs, eliminate vessel congestion that has been costing the Sudanese economy approximately $200 million annually in demurrage charges, and ensure the availability of gas to citizens in sufficient quantities at lower prices.
The signing ceremony took place today at the headquarters of the Sudan Sea Ports Corporation in Port Sudan in the presence of Minister of Transport and Infrastructure Seif Al-Nasr Al-Tijani, Red Sea State Governor Lt. Gen. Mustafa Mohamed Nour, and the Turkish Ambassador to Sudan, Fatih Yildiz.
The MoU was signed on behalf of the Sudan Sea Ports Corporation by Engineer Gilani, Director General of the Corporation, while Mr. Al-Dabbagh, owner of Argaz Company, signed on behalf of the Turkish company.
Transport Minister: Cooperation with Türkiye Enters a New Phase of Strategic Projects
Minister of Transport and Infrastructure Seif Al-Nasr Al-Tijani said the entry of Türkiye’s Argaz Company into Sudan’s gas sector marks an important step toward developing the country’s energy infrastructure, noting that Sudanese-Turkish relations are built on a long history of cooperation and partnership across various fields.
He added that the signing of the MoU reflects the strength of bilateral relations and affirmed that the coming period will witness expanded cooperation through the signing of additional memoranda of understanding and agreements, as well as the implementation of major development and strategic projects serving the mutual interests of both countries.
Sudan’s First Dedicated Gas Terminal
Engineer Gilani, Director General of the Sudan Sea Ports Corporation, stated that the MoU covers the construction of a dedicated gas terminal at Suakin Port under the BOT model, explaining that it will be the first facility of its kind in Sudan specifically designed for handling gas shipments.
He noted that the new terminal will be one of the largest projects undertaken by the Corporation in this sector and will have the operational capacity to receive and service three vessels simultaneously, significantly accelerating gas discharge operations, reducing vessel waiting times, and improving the port’s logistical efficiency.
Ensuring Adequate Gas Supplies for Sudan
Gilani said the project will enable the importation of sufficient gas volumes to meet Sudan’s entire domestic demand, stressing that the increased handling capacity at the port will directly contribute to stable supplies and lower gas prices, delivering tangible benefits to Sudanese consumers.
He added that the project represents a major step toward modernizing Sudan’s gas import, storage, and distribution system, thereby strengthening the country’s energy security and supporting the national economy.
Cutting Vessel Demurrage Costs by $200 Million Annually
The Director General revealed that Sudan has been indirectly bearing vessel waiting charges amounting to approximately $200 million annually, as these costs were ultimately passed on to importers of petroleum products, including gas.
He explained that the completion of the new terminal and gas storage facilities will substantially reduce vessel waiting times, thereby lowering these costs and saving around $200 million each year, with a positive impact on gas import costs and domestic market prices.
Government Institutions Commended for Supporting the Project
Engineer Gilani praised the Ministry of Finance, particularly its Partnerships Department, for preparing the technical and economic studies required for the project, noting that the studies have been completed and submitted to the Ministry of Justice to finalize the legal and contractual procedures.
He also commended the Ministry of Energy and Petroleum for providing technical supervision of the gas storage facilities, while expressing appreciation to the Governor of Red Sea State for his close follow-up of the project and to the Mayor of Suakin for supporting the initiative and helping create employment opportunities for residents of Suakin locality and the wider Red Sea State.
Argaz: Project Construction to Begin Immediately and Be Completed Within One to One and a Half Years
For his part, Mr. Al-Dabbagh, representative of Türkiye’s Argaz Company, expressed his appreciation to all parties that contributed to reaching the signing of the MoU, particularly the Turkish Ambassador to Sudan.
He affirmed that the company is committed to supplying Sudan with large quantities of gas at competitive prices, adding that project implementation will commence immediately after the completion of the necessary procedures and is expected to be completed within one to one and a half years.
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