Senegal has put its gas-focused investment opportunities on display at the Invest in African Energy reception in Frankfurt, Germany on Thursday, organized by the African Energy Chamber.
With major European players like BP, TechnipEnergies, TotalEnergies and more already active in the market, Mamadou Fall Kane, Deputy Permanent Secretary of COS PETROGAZ, outlined strategic natural gas and renewable energy opportunities for German and European private sector players.
This is supported by the West African country’s proven history of exploration, attractive fiscal framework and wealth of geological and seismic data.
To date, Senegal has served as a regional leader in pioneering a diversified energy mix, prioritizing the simultaneous development of fossil fuel and renewable resources.
The country currently has two offshore megaprojects under development – the 100,000-barrel per day Sangomar Field Development and the 10-million-ton-per-annum Greater Tortue Ahmeyim (GTA) project which are both set to produce first oil and gas, respectively, later this year.
At the same time, Senegal is home to one of the largest solar power plants in West Africa – the 20MW Senergy 2 – and the largest wind farm in the region – the 159MW Taiba N’diaye wind farm.
“Liquefied natural gas (LNG) will play a vital role in the transition to cleaner sources of energy. Right now, LNG is the second-fastest growing source of energy in the world. By 2030, LNG global demand will increase by 50% to 550 million tons per annum,” stated Fall Kane.
“Africa is also committed to unlocking its renewable potential. In Senegal, 32% of our installed power capacity is solar and wind power. Africa is not lagging behind in renewables. In fact, the continent has 60% of global solar power potential. What does this mean? That Africa has an important role to play in new energy development.”
As Europe’s largest economy, Germany is urgently seeking to obtain alternative energy supplies and reduce its reliance on Russian gas imports, which previously made up over half of its gas consumption.
According to Fall Kane, Senegal represents a highly prospective oil and gas trading partner to help German and European economies to achieve energy security, while making clean energy gains.
The country is estimated to hold approximately 910 billion cubic meters of natural gas, coupled with a close geographical proximity to European markets.
“Africa has an important role to play in supplying the European market. By 2030, we expect 148 million tons per annum of new capacity, with the U.S. leading that supply with 65% of the market share, followed by Qatar. Africa has to monetize its stranded associated gas resources.
For that, we need very strong investment. Not just in Senegal, but in all stranded gas assets, know that LNG is an important source of energy to achieve our net-zero carbon goal for 2050,” he continued.
While Senegal’s first gas production is currently marketed for Asia, both the governments of Senegal and Mauritania have indicated plans to export LNG to Germany in the near future, with FID for the second phase of the GTA development expected in 2024/2025.
According to estimates by the International Energy Agency, Africa could replace as much as one-fifth of Russian gas exports to Europe by 2030, generating additional opportunities in the exploration, production, shipping, distribution and associated services of natural gas.
Plans to accelerate the import of LNG are already underway in Germany.
Last December, the country inaugurated its first LNG terminal – expected to supply around six percent of its domestic energy demand – with plans for additional gas pipeline infrastructure underway.
This includes the short-term leasing of five Floating Storage and Regasification Units and the installation of one to two onshore terminals.
