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Joining the ranks of oil-producing economies, Senegal achieved first oil production at its inaugural offshore oilfield development – the Sangomar project – last month, marking the beginning of a transformative era for the country’s energy sector. Following this milestone, newly appointed Minister of Energy, Petroleum and Mines Birame Souleye Diop will showcase Senegal’s vast energy sector potential as a speaker at this year’s African Energy Week (AEW): Invest in African Energy 2024 event – taking place in Cape Town from 4-8 November.

Delivered to energy major Shell, the first crude shipment from the Sangomar project came just three weeks after first oil output. Senegal’s evolution into a regional oil producer is set to open up myriad opportunities for economic growth and industrial development, as well as attract a fresh slate of investment to the country’s offshore blocks. Owing to the export-centric nature of the project, Sangomar is expected to generate substantial revenues for the country, with Phase 1 alone projected to bring in $2-4 billion in direct revenue over its duration.

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Appointed Senegal’s Minister of Energy, Oil and Mines last April, Minister Diop has already enacted reforms across the sector. Earlier this month, he announced that the Ministry would review contracts with mining companies that fail to meet environmental obligations. This comes after Senegal’s President Bassirou Diomaye Faye – also sworn in last April – announced that the government will audit contracts with foreign mining, oil and gas companies. As such, Minister Diop has proposed that foreign companies allocate a portion of profits to local projects and communities, with a focus on job creation, technology transfer and mutually beneficial partnership.

In addition to the country’s projected revenues from the Sangomar field, Senegal anticipates rapid economic growth in 2024 – potentially reaching 8.3% – driven by first gas production from the Greater Tortue Ahmeyim (GTA) LNG project. Situated on the maritime border between Senegal and Mauritania, the GTA LNG project recently achieved a major milestone with the arrival of a floating, production, storage and offloading vessel.

In conjunction, Senegal plans to build a new gas-to-power plant near Saint-Louis, with an initial capacity of 250 MW, expandable to 500 MW. The plant will be supplied with gas from the GTA field, as Senegal transitions into a gas-producing nation by late-2024. A 400-km gas pipeline, managed by the state-owned Senegalese Gas Network, will connect GTA to Saint-Louis, Dakar and Mbour. The first phase involves the laying of a 45-km offshore pipeline and 40-km onshore segment to link the GTA development to the new gas-to-power plant. The pipeline is expected to be completed by late-2025, with the power plant starting operations in early-2026.

During AEW: Invest in African Energy, Minister Diop is expected to discuss these developments and future plans aimed at ensuring energy security and driving economic growth in Senegal. Additionally, he will outline the fiscal and regulatory frameworks that provide an enabling environment for such investments, further cementing Senegal’s position as a leading energy hub in the MSGBC region.

“Even in the short time since his appointment, Minister Diop has affirmed Senegal’s commitment to driving a sustainable and inclusive energy sector. We look forward to his insights and contributions at AEW 2024, as he shares Senegal’s latest achievements, investment opportunities and future goals, with a view to unlocking the full scope of Senegal and the MSGBC region’s energy resources,” states African Energy Chamber Executive Chairman, NJ Ayuk.