Trinity Energy subsidiary A&A Oil and Gas Ltd has been awarded a licence to build a 50,000 bpd refinery near the Paloich oilfield, around 350 km from the border with Ethiopia.
Preliminary feasibility studies have been carried out by Amec Foster Wheeler and Engineers India Ltd (EIL).
East Africa imports roughly 15 million tpy of petroleum products mostly from Asian refineries.
Trinity is planning to build a modular 25,000 bpd facility that can be quickly scaled up the capacity in multiples of 25,000 bpd.
The facility is expected to produce an initial 2.5 million tpy of petroleum products, ramping up to 10 million tpy over a period of 5 years. The output will target high growth export markets in Ethiopia, Kenya, Sudan, Uganda and Tanzania.
Construction is tabbed to begin in Q1 2019, with private equity providing part of the finance for the unit.
Chinese firm Peiyang Chemical Engineering Co. (PCC) will carry out EPC work and will establish a workshop to fabricate major components for the refinery.
South Sudanese oil production is expected to reach 300,000 bpd by Q3 2019.
Trinity Energy is also in negotiations with technology companies to build a product pipeline to Ethiopia.