LNG Supports MSGBC Power Generation

Upcoming LNG projects are expected to supply fuel for power generation facilities across the MSGBC region, thereby advancing access to affordable electricity. As part of the implementation of a national gas-to-power strategy, Senegal’s national electric utility Senelec signed an offtake deal last June with local downstream player Elton Oil to advance a $120 million regasification terminal project in Dakar. Under the first phase of the 5-year contract, Elton Oil will supply LNG to the upcoming 300 MW West African Energy power plant situated on the Cape des Biches power generation site. Meanwhile, a second stage will see the supply of LNG to more remote sites, such as the Tobène, Kahone and Malicounda power plants.

The offtake agreement with Elton Oil serves as a contingency supply ahead of anticipated first gas from the Yakaar-Teranga gas field, which is due to come online in 2027 and serves as part of Senegal’s strategy to utilize domestic gas for power generation. Meanwhile, with construction poised to commence this year, the Sandiara gas-to-power facility will feature a nameplate capacity of 360 MW and utilize natural gas resources from the GTA field. Due to start operation next year, the plant will be situated in the Sandiara Special Economic Zone and provide electricity too Senelec under a 25-year power purchase agreement (PPA).

Natural Gas as a Transition Fuel

Serving as part of Senegal’s strategy to adopt natural gas as a transition fuel, the 120 MW Malicounda power plant – which was inaugurated in 2023 – is a combined cycle power plant that will be converted from oil to natural gas once the country begins to exploit local deposits. The plant is covered by a 20-year PPA with Senelec and has so far boosted Senegal’s electricity generation by 8%, serving as a major development in the government’s target of achieving universal energy access by 2025. Currently comprising 50 oil-powered electricity generators, the plant’s conversion to natural gas is set to diminish high costs associated with imports while meeting the government’s energy transition targets.

As part of Mauritania’s own strategy to reduce its reliance on imported fuels, the country’s Ministry of Oil, Mines and Energy is exploring opportunities with energy solutions provider Power Africa to convert the 180 MW Nouakchott Nord power plant from a heavy fuel oil-based power plant to natural gas. Mauritania is well-positioned to leverage its own natural gas resources from the GTA, BirAllah, Banda and Tevet fields to support this venture while also supplying gas to an entirely new 120 MW gas power plant. An agreement signed between the ministry and gas transmission and distribution company Taqa Arabia-GoGas aims to exploit gas reserves in the Banda and Tevet fields – estimated at 2.2 tcf – to supply gas to the 180 MW dual power plant. The contract also aims to provide additional electricity reserves to allow Mauritania’s electric utility company Somelec to improve energy performance in the country.

Economic Growth on the Back of Power Generation

The development of offshore oil and gas resources will not only bolster energy access across the region but provide cost-effective electricity to various segments of the economy, such as mining. Efforts to capitalize on upcoming LNG projects are already underway. To supply much-needed electricity to the power-hungry mining sector of Guinea-Conakry, the country’s government approved a 2023 agreement with natural gas service company West Africa LNG earlier this year to begin development of a $300 million LNG import project. Expected to supply electricity to Guinea-Conakry’s electric utility company Electricité de Guinée by Q1, 2025, the large-scale LNG initiative includes several receiving terminals, high-capacity regasification units, distribution infrastructure and gas-fired power plants with an estimated total capacity of 1.8 GW.

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 you participation at the MSGBC Oil, Gas & Power 2024 conference. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.