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Wednesday, November 23, 2022

Domestic Gas Could Halve Senegal’s Electricity Prices Next Year

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The host of the upcoming MSGBC Oil, Gasoline & Energy Convention and Exhibition 2022 (https://bit.ly/3GV1Kol), Senegal, is in some ways the seat of energy within the area: west Africa’s fourth largest financial system at $25 billion and projecting 13.7% progress subsequent 12 months, largely on account of its booming early-phase vitality trade. Moreover, Senegal’s President, H.E. Macky Sall is Chairperson of the African Union for this 12 months, giving the nation sturdy pan-African affect. The west African nation can be a regional chief in energy technology and has pioneered a various vary of transnational downstream tasks that gentle the way in which for the trade’s inter-connected regional future.

And but, Senegal’s 17.58 million inhabitants nonetheless bears the burden of energy paucity with the nation counting on vitality imports for 64% of its grid provide. Furthermore, the nation’s regionally main 66% electrification price shows marked inequities between vitality entry in city areas at 88% and in rural communities at simply 38%. Vitality imports additionally drive up the worth of electrical energy to nearly twice that of fellow west African vitality chief, Ivory Coast at $0.227/kWh, additional impinging entry. The theme of the MSGBC Oil, Gasoline & Energy Convention & Exhibition is The Way forward for Pure Gasoline: Development Utilizing Strategic Funding and Policymaking with good motive. Gasoline is vital to unlocking dependable, cost-effective transitional energy for west Africa; it’s energy that boasts 70% decrease emissions than conventional heavy gas oils; and crucially, gasoline is energy that develops Africa. Because the convention will spotlight, Senegal at the moment leads the area’s gasoline rush drive in the direction of gas-to-power developments, with key downstream gasoline developments to observe on this sector for the approaching 12 months.

Gasoline Paves the Approach

An estimated 2.5 million tons of liquefied pure gasoline (LNG) anticipated to be produced in Senegal’s transnational Better Tortue Ahmeyim (GTA) megadevelopment subsequent 12 months, with LNG already feeding the nation’s energy. KARMOL provides 15% of whole demand by way of a 236 MW floating energy plant stationed in Dakar’s harbor —a determine on account of be boosted by the arrival of a world-first modular LNG floating storage and regasification unit (FSRU) this month. The unit has been outfitted by GAS Entec expressly for this goal, with a 300 million cubic ft per day capability. The unit joins a smaller FSRU that has been feeding the facility plant since June, final 12 months. Moreover, the 130 MW Malicounda-Melec energy plant 71km south of Dakar is one other promising growth; this $167 million facility just lately entered right into a ten-year assured asset efficiency settlement contract with Finnish industrial energy servicing agency, Wärtsilä for assured, dependable energy provide. The plant is ready to extend Senegal’s energy technology capability by 17% while decreasing prices for technology by as much as 14%, initially working on heavy gas oil earlier than transitioning to LNG subsequent 12 months, due to Wärtsilä’s proprietary dual-fuel engine know-how.

On the horizon, Woodside’s Sangomar megadevelopment has signed gasoline provide to the nation’s nationwide utility firm, SENELEC commencing subsequent 12 months at 60-100 million cubic ft per day, joined by bp’s GTA with an additional 35 million cubic ft day by day. Mixed, these gasoline feeds may generate 600-840 MW of energy— thrice the quantity of that produced by KARMOL’s amenities, fed by the mature Gadiaga subject. As well as, the U.S. Company for Commerce and Growth is financing feasibility research for a 144km gasoline pipeline from the 20 trillion cubic ft Yakaar-Teranga gasoline subject, 4 thirds the dimensions of GTA. The potential manufacturing from this challenge may energy 9 gas-fired energy vegetation on the coast, pending remaining funding resolution this 12 months. And, West Africa Vitality has developed a 300 MW combined-cycle energy plant in Cap des Biches coming on-line this 12 months and thus set to learn from upcoming boosts to home provide, powering 500,000 houses and offering 25% of the nation’s vitality.

With the acquisition worth of Senegalese gasoline anticipated at $5-6 per Million British Thermal Items (MBTU), new gas-to-power tasks may greater than halve the worth of electrical energy provided that heavy gas oils price $14 MBTU by comparability. In step with the Emergent Senegal Plan, H.E. Macky Sall, the Senegalese President and African Union Chairperson beneath whose auspices the MSGBC Convention is being held, has dedicated substantial sources to attaining common entry to inexpensive, dependable electrical energy for Senegal by 2025. Gasoline has the facility to see this objective quickly and sustainably achieved. Be a part of H.E. President Sall, key trade executives and heads of state from throughout the area on the MSGBC Oil, Gasoline & Energy Convention and Exhibition 2022 to collaboratively guarantee a unified narrative for a gas-fuelled vitality transition and to take pleasure in unparalleled networking alternatives amongst the decision-makers for the way forward for African energy.

Distributed by APO Group on behalf of Vitality Capital & Energy.

In regards to the MSGBC Oil, Gasoline & Energy 2022 convention:
Underneath the patronage of H.E. Macky Sall, President of the Republic of Senegal, MSGBC Oil, Gasoline & Energy will as soon as once more happen in Dakar, Senegal, with the occasion serving as a catalyst for funding and multi-sector growth in 2022. To seek out out extra go to MSGBCOilGasandPower.com or contact [email protected]

This Press Launch has been issued by APO. The content material is just not monitored by the editorial group of African Enterprise and never of the content material has been checked or validated by our editorial groups, proof readers or truth checkers. The issuer is solely chargeable for the content material of this announcement.

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