Newsbase - Downstream Middle East & Africa News Monitor Subscribe to download Archive

Sudan signs final deal with Turkish-backed venture for Suakin LPG terminal

Sudan’s Sea Ports Corporation has signed a contract with Turkish-backed Suakin Petroleum to finance, build and operate a liquefied petroleum gas (LPG) berth and storage terminal at Suakin on the Red Sea, a project the ports authority says is intended to strengthen domestic energy supplies and develop regional distribution capacity.

The agreement, signed on November 8 under a build-operate-transfer (BOT) arrangement, is the definitive contract following an investment proposal submitted in October 2025 and a memorandum of understanding signed in July 2026, Sudan Tribune reported. Sudan’s Justice Ministry reviewed and authenticated the contract, according to the Sea Ports Corporation. Suakin Petroleum is a joint venture between Turkish LPG distributor Argaz and Sudanese firm Petrodar. The July memorandum was signed with Argaz alone.

Sea Ports Corporation director general Jelani Mohammed Jelani said the project would include a marine berth with a depth of 12 metres, capable of receiving gas carriers with cargo capacities of up to 5,000 tonnes. A storage facility would be built approximately 150 metres from the berth. Construction is projected to take 24 months. At the July signing, Jelani said the terminal would be able to serve three vessels simultaneously.

The facility will handle LPG, widely used as cooking gas in Sudan. Argaz chairman Mohammed Tabbakh described the project in September as Suakin’s first specialised berth for receiving and handling LPG, with storage capacity of about 28,000 cubic metres, Al-Amssar reported. Jelani cited the same storage figure when the memorandum was signed in July, according to Dabanga. Sudan Tribune described the project as a liquefied natural gas (LNG) terminal and put storage capacity at 28,000 tonnes.

Sudan’s official news agency SUNA said the project would include facilities to distribute gas by road tankers and rail to other parts of Sudan, with longer-term plans to serve neighbouring African markets. It said the project would also expand strategic gas storage capacity and ease constraints on imports and distribution. The ports authority said Suakin’s development would also support maritime and logistics services for landlocked African countries and other Red Sea markets.

No construction start date has been announced, although an Argaz representative said in July that work would begin within one to one and a half years. The contract’s financial value, financing arrangements and operating concession period have not been disclosed.

Infrastructure and Transport Minister Saif al-Nasr al-Tijani Haroun described the agreement as part of Sudan’s economic recovery and reconstruction efforts. Turkish Ambassador Fakhri Oba said Turkish investors were interested in returning to Sudan and that the project could encourage further investment. In Istanbul in early November, Turkish Trade Minister Omer Bolat discussed with Sudan’s industry and trade minister how Turkish contractors could contribute to the country’s reconstruction, Anadolu Agency reported.

The Sea Ports Corporation has also been seeking other foreign partners. In June it signed a memorandum of understanding with Oman’s state-owned Asyad Ports on port planning, operations and training during a visit to Muscat by Haroun.

The signing comes as Sudan’s war, which began in April 2023, continues to disrupt economic activity and energy distribution. The paramilitary Rapid Support Forces (RSF) began drone attacks on Port Sudan in May 2025, striking the port, airport and other vital infrastructure. The energy ministry said in August that cooking gas deliveries had been complicated by the destruction of some storage facilities in drone attacks on Port Sudan, Sudan Tribune reported.

See IntelliNews: Turkish trade minister discusses ties with counterparts from Africa, Asia, Middle East
See IntelliNews: Oman, Sudan sign ports cooperation pact to deepen maritime and logistics ties
See IntelliNews: Sudanese paramilitary RSF take control of strategic border area shared with Libya and Egypt