Global Oil Supply Dynamics

As global oil demand is projected to peak by 2030, the MSGBC region’s emerging significance in global energy supply could bridge future energy needs.

Global oil demand is expected to be led by China, India, the Middle East, and Africa, with investments in the oil sector projected to reach $14 trillion by 2045, according to the OPEC. Meeting this increasing demand, Sangomar’s oil, comparable in quality to Oman Blend and Johan Sverdrup, strategically appeals to refineries in China, Poland, the Netherlands, and Germany, which are known buyers of this grade of oil.

MSGBC’s Role in Meeting Global Gas Demand

The MSGBC region, with its significant LNG projects such as the Grande Tortue Ahmeyim (GTA) LNG project by bp and Kosmos Energy, is also well-positioned to meet the global gas demand, expected to rise between 2030 and 2050.

Located on the maritime border of Mauritania and Senegal, the GTA project is set to commence gas production in late 2024, promising substantial economic benefits for the region and addressing global gas demand. With an estimated 15 trillion cubic feet (tcf) of recoverable gas, GTA plans to export 2.3 million tons of LNG annually over 30 years, primarily to Europe, with significant interest from Germany.

The global LNG market is projected to experience a demand-supply gap in the early 2030s, underscoring the need for new projects and additional liquefaction capacity. Asia, North America, and Europe are expected to see the largest growth in demand, driven by coal-to-gas switching and increasing power sector needs.

Geographic Advantages

The MSGBC region’s geographic location provides strategic advantages for energy transportation. The average cargo journey from West Africa to Europe takes five to eight days, and 20 days to reach the US. Furthermore, on a long term basis, the MSGBC gas-producing countries could potentially integrate their domestic pipelines with the 7,000 km Nigeria-Morocco gas pipeline project, extending connectivity to Spain and augmenting their own gas export capabilities.

Stable Political Environment

Furthermore, the region’s political stability is a significant advantage for investors seeking secure energy trade routes. Since October 2023, oil companies have redirected commercial vessels around Africa to avoid tensions in the Red Sea, thereby positioning Dakar port as a vital energy corridor for vessel refueling and restocking. With the commencement of first oil production, Senegal can capitalize on the global supply gap by leveraging its stable political environment to efficiently export oil, ensuring reliable and uninterrupted supply to global markets.

With its geographical and geopolitical advantages, the MSGBC region is poised to strengthen its global energy position in the coming decades through ongoing oil and gas exploration projects. This includes Senegal’s Yakaar-Teranga project with reserves of 25 tcf of gas, and Mauritania’s BirAllah field, estimated to hold 80 tcf of gas.

Continued investment and collaboration will help the region achieve global energy security and economic growth. The MSGBC Oil, Gas, and Power 2024 conference and exhibition, held in Dakar on December 3-4, will bring together regional stakeholders and international investors to connect continents through energy.

Explore opportunities, foster partnerships and stay at the forefront of the MSGBC region’s oil, gas and power sector. Visit www.msgbcoilgasandpower.com to secure your participation at the MSGBC Oil, Gas & Power 2024 conference. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.