Countries in the MSGBC region including Senegal and Mauritania are set to record a gas market boom as key projects come online from as early as 2023
JOHANNESBURG, South Africa, April 7, 2022/ — Since major gas discoveries were made between 2014 and 2017, the MSGBC region, comprising Mauritania, Senegal, the Gambia, Guinea-Bissau and Guinea-Conakry, has emerged as a highly competitive investment destination for large-scale gas projects. Senegal and Mauritania are at the forefront of this revolution with the implementation of regulatory reforms, such as the 2020 Gas Code, and increased exploration activities driving the gas monetization and exploitation agenda.
With projects such as the $4.8 billion Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project coming online in 2023, Senegal and Mauritania are well positioned to address domestic energy needs while also helping to ensure energy security across the region and in international markets such as Europe. The project is expected to unlock up to 15 trillion cubic feet (tcf) of gas and as much as 2.5 million tons of LNG per year in its first phase. GTA operators bp and Kosmos expect the project to produce up to 10 million metric tons of LNG per annum once all three phases begin operations.
In addition, the anticipated 2023 final investment decision for the Yakaar-Teranga field development – which has an estimated 20 tcf of natural gas – by bp, Kosmos Energy and national oil company, Petrosen, will further boost Senegal’s gas market while driving electrification across the region. The implementation of gas-to-power projects in Senegal are a testimony of efforts by the MSGBC region to utilize gas reserves to improve energy access.
Moreover, to ensure the gas market reaches its full potential, Mauritania and Senegal have committed to boosting exploration with the Senegalese government expected to announce the winners of its 2020 Licensing Round as well as launch the AGC Shallow Block Licensing Round in 2022. Mauritania is also in the process of negotiating the licenses for exploration in 19 offshore blocks. With exploration and production projects under way in the Gambia, Guinea-Bissau and Guinea-Conakry, the MSGBC region’s gas market is headed for success.
“Positive developments recorded in the MSGBC region in recent years, however, significant investments are still required to increase exploration activities, ramp up production and develop the required infrastructure such as ports, pipelines and refineries, vital for optimal monetization and exploitation of energy resources,” states NJ Ayuk, Executive Chairman of the AEC, adding that, “With the window to secure investment for hydrocarbons narrowing, the time to negotiate and sign deals is now.”
Meanwhile, with MSGBC countries strategically located to export to Europe by sea, it is vital for increased investments in port infrastructure to maximize the monetization of gas resources. Both Senegal and Mauritania have been leading in this regard with the Senegalese government in partnership with Dubai-based port operator, DP World, kickstarting the construction of the ‘Port of the Future’, a $1 billion deep-water port in Ndayane. The government of Mauritania has also announced its plan to make the port city of Nouadhibou into a regional gas processing, import and export hub to improve the country’s maritime and logistics and enhance the trading of energy resources with international markets.
Under the theme ‘Exploring and Investing in Africa’s Energy Future while Driving an Enabling Environment,’ Africa’s premier energy event, African Energy Week (AEW), which will take place from 18 – 21 October 2022 in Cape Town, will discuss investment opportunities across the MSGBC region’s gas sector. At AEW 2022, energy leaders from the MSGBC region including H.E. Aissatou Sophie Gladima, Senegal’s Minister of Petroleum and Energies will participate in panel discussions, investor forums and high-level meetings to drive dialogue around the challenges and opportunities across Africa’s entire energy value chain.
Distributed by APO Group on behalf of African Energy Chamber.
