- Senegal plans to expand domestic gas use for power generation to reduce reliance on costly imported fuels.
- The government targets energy-cost reductions of up to 30% through domestic gas, renewables, efficiency measures and subsidy reforms.
Senegal plans to increase domestic natural gas use for electricity generation to reduce power costs and dependence on imported fuels. Energy Minister El Hadji Abdourahmane Diouf told Reuters that the government will focus on developing domestic gas resources, expanding renewable energy capacity, and improving operational efficiency.
Senegal’s energy costs have risen sharply this year amid Middle East conflicts, increasing the government’s fuel subsidy burden. Meanwhile, the expansion of oil and gas production has supported economic growth and increased exports.
The government aims to eventually reduce energy costs by around 30%. However, it plans to combine energy-sector reforms with changes to its subsidy system.
“In the short term, the government is shifting from broad-based support to targeted subsidies focused primarily on the most vulnerable households, public transportation and strategic productive sectors,” Diouf said.
He added that the government seeks to improve the efficiency of public spending while maintaining consumer protection. However, authorities have not finalised specific subsidy reforms.
Senegal Opens Energy Sector To New Partners
Diouf said Senegal remains open to new partners that can support the development of its oil and gas resources. He identified BP, Kosmos Energy and Woodside Energy as strategic partners that have contributed to domestic gas discoveries, development and production.
Senegal entered oil production in 2024 when Woodside Energy began production at the Sangomar oil and gas field. The country also announced gas production at the Greater Tortue Ahmeyim LNG project, operated by BP, in 2025.
The government has also focused on the Yakaar-Teranga gas field. In April, national oil company Petrosen received the licence for the project, which Kosmos Energy previously operated.
Diouf described Yakaar-Teranga as a key project for Senegal’s energy strategy. He said the project will supply gas to the domestic market while supporting exports. “Senegal remains open to new partners who can support the project’s development, in accordance with national interests and under the best technical, economic and commercial conditions,” Diouf said.
The minister also said audits and contract reviews launched by the previous government seek to strengthen governance across Senegal’s energy sector.