Senegal starts substantial gas production

In the 1990s, Macky Sall served as a young geologist for Senegal’s state-owned petroleum company, tasked with exploring for oil and gas in the West African nation. Despite years of efforts, he and his colleagues faced disappointment as they found no significant deposits. However, over two decades later, after Sall became Senegal’s president, a substantial gas discovery by an American energy company, totalling 15 trillion cubic feet in 2015, marked a transformative moment.

This massive find positioned Senegal as one of Africa’s potential leading natural gas producers and elevated Sall into a global advocate for the rights of developing nations to utilize their resources, including fossil fuels, for industrialization and development.

Africa totals 40% of gas discoveries in the last decade

Despite delays, Senegal is now on track to start gas production from the reserves later this year, as indicated by BP, which oversees the operation. According to the World Bank, Africa accounted for 40% of natural gas discoveries from 2010 to 2020, with notable finds off Senegal’s coast near Saint Louis and a smaller deposit closer to the capital, Dakar.

Following Russia’s invasion of Ukraine in 2022, European leaders, who had initially committed to moving away from fossil fuels, began considering Africa’s natural gas as an alternative to Russian supplies.

While developing nations, including Senegal, seek support from global financial institutions like the World Bank for ambitious development projects, concerns have been raised by environmentalists. They caution that such endeavours in developing nations could emerge as significant contributors to climate change, potentially undermining global efforts to reduce greenhouse gas emissions.

Although natural gas is generally considered a preferable alternative to oil and coal by environmental researchers, it remains a fossil fuel that contributes significantly to global warming, especially at a time when the United Nations has stressed the urgent need for drastic measures to curb climate change. The success or failure of these natural gas projects in developing countries will serve as a test for international commitments made at climate conferences to phase out fossil fuels.

Senegal’s president advocates for Africa’s use of its resources

Sall, who is set to conclude his two-term presidency next month, has frequently clashed with environmental organizations during international climate and energy summits. Sall joined other leaders and energy experts in asserting that natural gas, in particular, will play a crucial role in providing electricity to the 600 million people on the continent who currently lack it.

The gas reserve lies approximately 75 miles offshore along Senegal’s maritime boundary with Mauritania, buried over a mile beneath the ocean floor, marking one of Africa’s deepest offshore projects to date. In 2016, BP became the operating partner for the field, with an estimated production potential of 30 years. The total gas reserves discovered in the region amount to about 100 trillion cubic feet. Presently, Algeria, Egypt, and Nigeria rank as Africa’s top natural gas producers.

People expressed optimism, believing it would improve their lives, with hopes that the gas would bring electricity, enabling conveniences like refrigeration and reducing the need to walk over a kilometre to charge phones.

Africa is still behind in electricity use

Despite Senegal boasting a higher electrification rate nationally compared to many African countries, around 30% of the population still lacks access to electricity. The average African consumes as much energy in a year as the average American does in four days, with overall emissions from the continent contributing less than 4% to the global total, despite Africans making up nearly 20% of the population.

Sall envisions gas as a key player in Senegal’s transition away from oil, the primary source of the country’s electricity. However, uncertainties linger about whether the World Bank and other international development agencies will provide financial support for the expensive infrastructure projects, including pipelines and processing plants, required for domestic gas utilization.Top of Form In 2017, the World Bank allocated $30 million for Senegal’s natural gas sector development.

However, the bank withdrew its funding for another project aimed at converting existing power plants to natural gas. A recent report from the International Energy Agency highlighted challenges facing Senegal’s gas industry, particularly with the shift away from fossil fuel project funding by development banks.

The report emphasized uncertainties about the cost, financing, and timeline for Senegal’s midstream gas infrastructure. Sall expressed determination for Senegal to move forward with gas projects, even without World Bank funding. He declared the country would not leave its gas untapped beneath the ocean floor, even if facing challenges.

Sall, having engaged directly with oil and gas companies, asserted his commitment to avoiding the pitfalls seen in other countries. He underlined his involvement in negotiating agreements requiring the participation of local businesses and supporting laws ensuring that gas revenue contributes to essential services like health and education in Senegal.