- Senegal expects the final investment decision (FID) for its landmark gas project in early 2025, aiming to produce 150-250 MMSCFD for electricity and industrial use.
- The project could generate 576.3 billion CFA francs in revenue from 2025 to 2027, funding critical public services like health, education, and infrastructure.
- By cutting energy imports and stabilising domestic prices, Senegal positions itself as a regional energy leader, driving industrial growth and investment.
Senegal plans to make a significant energy leap with the final investment decision (FID) for the Yakaar-Teranga gas project expected in early 2025. Société des Pétroles du Sénégal (Petersen) and Kosmos Energy lead the project, which could transform the country’s energy landscape.
Yakaar-Teranga will produce between 150 and 250 million standard cubic feet of gas daily (MMSCFD). The project will mainly supply electricity generation and industrial uses, including the Petersen Trading & Services urea plant. This initiative aligns with Senegal’s strategy to cut energy imports and meet the growing demand for local resources.
The project promises a significant economic boost. Forecasts estimate that Yakaar-Teranga will generate around 576.3 billion CFA francs in revenue between 2025 and 2027. This income will finance critical investments in social sectors, spurring national development. Tax revenue from the project will rise from 127.7 billion CFA francs in 2025 to 243.2 billion by 2027, directly funding essential services like health, education, and water infrastructure.
Beyond economic growth, Yakaar-Teranga aims to stabilize energy prices in Senegal. Reducing dependence on energy imports will shield Senegal from global oil and gas price fluctuations. This stability will benefit Senegal’s industrial sector, where energy costs are crucial in maintaining competitiveness. The development of domestic gas infrastructure also aims to attract further investments, strengthening Senegal’s presence in the regional energy market.
The project positions Senegal as a rising energy leader in West Africa. With domestic gas production, Senegal will support its energy security and offer a model for other African nations. Yakaar-Teranga’s success will bring the country closer to achieving energy self-sufficiency. This progress will drive socio-economic development and enhance Senegal’s role in West Africa’s energy value chain.
By slashing energy imports, Senegal can reinvest in its economy. Yakaar-Teranga’s revenue will be critical in the government’s Public Investment Program (PIP). These funds will develop infrastructure and create local jobs, benefiting the Senegalese population.
Overall, Yakaar-Teranga marks a turning point for Senegal’s energy sector. Domestic production, economic expansion, and price stability will lead the country to sustainable development. As Senegal continues to develop its gas resources, it aims to secure a leadership position in Africa’s energy transition.
If Senegal succeeds with Yakaar-Teranga, it may encourage other African nations to explore their natural resources to meet growing energy needs. This project is a critical step toward ensuring Senegal’s stable and prosperous energy future.