As gas-to-power is a major pillar of Senegal’s strategy to provide universal power access and increase economic competitiveness, the country aims to obtain sufficient energy sources while reducing the electricity shortage among its people
Africa is leading the liquefied natural gas (LNG) global race as it will receive one-third of total global greenfield investments for LNG projects in 2019, around US$103bn. Senegal is leading the way with its giant Grand Tortue Ahmeyim (GTA) gas field, which will have economic and social benefits in the long-term.
Natural gas in the GTA was first encountered in 2014 by frontier explorer Kosmos Energy, who later entered into a joint-operating venture with British supermajor BP. Successive discoveries since then have indicated that the field could produce up to 10mn tonnes of LNG per year. Beyond sizeable reserves, the project is unique in many senses as it allowed a landmark transborder cooperation agreement to be signed between Mauritania and Senegal. The GTA project will be known as the fastest LNG project ever, with just five to six years between discovery and first gas, which is scheduled for 2022.
As part of the country’s Emerging Senegal Plan (PSE), launched by President Macky Sall in 2014, Senegal aims to obtain sufficient energy sources while reaching a triple objective that includes providing reliable electricity for its citizens with the goal of reaching universal access by 2025; increase its competitiveness by supplying affordable power to local companies and protecting the environment with cleaner energy.
Since the GTA discovery, gas-to-power has become an increasingly hot topic in Senegal and is now an important component to becoming a regional energy hub and an energy-independent nation.
Serigne Mboup, managing director of Société Africaine de Raffinage (SAR), Africa’s oldest hydrocarbon refinery, said, “The government of Senegal has expressed its wish to make our country the energy hub of West Africa. This strategy is in line with the global push towards greener energy production which SAR intends to fully comply with.”
In order to implement its gas-to-power masterplan, the Senegalese government is working closely with an integrated team comprising UK-based Penspen and MJMEnergy. Penspen will be in charge of studying technical aspects of the project including multiple scenarios to connect final consumers with new gas supplies. It is set to put together a conceptual gas network infrastructure design associated with an estimation of costs and timeline. MJMEnergy will define the economics of the projects, including gas markets and financial related aspects. It will further develop the institutional framework and business requirements of the new public-private enterprise that will build and manage the gas network.
“This important project is a significant milestone for the country in providing access to competitive and clean supplies of energy to its people. We look forward to using our deep technical experience to help Senegal maximise the benefit from the natural gas it has discovered within its territorial waters,” Penspen CEO Peter O’Sullivan commented.
The transportation network will be split into three: the North network, South Network and Dakar network. With a total length reaching 427km, the project cost is estimated at around US$300mn and will be built in various phases.
The North segment will include a short line from the GTA to a power plant near Saint-Louis, which will then be extended by 140km to the Tobene Power plant onshore. This segment is aimed to be finalised by 2024.
The South network will link the Dakar network to the Kahone power plant by 2023. It includes a 120km pipeline.
Finally, the Dakar network is the infrastructure centrepiece, aimed to be commissioned in 2023. It will connect the Sangomar gas producing field to several existing power plants around Dakar, achieving a total length of 157km.
In order to generate enough power to meet national goals, Senegal is moving forward with a dual strategy regarding its power plants. A number of existing power plants will be converted into dual-fuel power plants while brand new combined cycle power plants will be commissioned by 2022-2023.
According to a study run by Sweden-based Wärtsilä, US$61mn is necessary for conversion operations. Discussions are currently ongoing with the World Bank regarding funding for this particular project. Mostly located around Dakar, these power plants could be fed by Sangomar gas as early as 2023.
Under the leadership of President Macky Sall, Senegal boasts tremendous growth figures, around seven percent annually. The trend is not looking to weaken, with the country positioned by the CIA’s World Factbook at number 12 in the world’s fastest-growing economies by 2023. Such figures, coupled with massive hydrocarbon discoveries, have made Senegal a top investment destination globally. Major projects are underway to increase rural inclusion and reduce unemployment.