The Senegalese government has taken a significant step towards achieving its energy goals with the signing of a protocol agreement for the construction of a second oil refinery. The new facility, with a capacity of 4 million tonnes per annum, is expected to be built in partnership with Turkish company Yamata. The agreement was signed in New York in the presence of President Bassirou Diomaye Faye.
The new refinery will primarily process crude oil from the Sangomar field, as well as other types of crude available on the international market. The project is estimated to require an investment of between $2 and $3 billion. In addition to the refinery, the partnership also includes the modernization of the Mbao refinery, with an estimated investment of $300-500 million.
Under the terms of the agreement, Yamata will be responsible for the engineering, procurement, construction, and financing of the project, without any sovereign guarantees from the Senegalese government. The signing of the protocol is expected to pave the way for the completion of detailed engineering studies, prior to the commencement of construction.
The Senegalese authorities aim to use the new refinery to meet the country's domestic demand for refined products and to export to neighboring countries. The project is also expected to contribute to reducing Senegal's dependence on imported petroleum products. Furthermore, the program includes the development of petrochemical activities and value chains related to petroleum derivatives.
The project is expected to have a significant impact on the Senegalese economy, with over 15,000 direct jobs anticipated during the construction phase. The authorities also expect the project to promote local content and the development of skills in engineering, maintenance, and industrial logistics.
The Senegalese government has presented the initiative as a major step towards energy sovereignty, with private financing allowing for the investment to be made without sovereign guarantees. The project is seen as a key component of the country's strategy to increase its refining capacity and reduce its reliance on imports.
According to Babacar NGOM, the project's development is a significant milestone for Senegal's energy sector. The country's refining capacity is set to increase substantially, providing a boost to the national economy. The project's implementation is expected to be closely monitored by the Senegalese authorities.
Key points
- The new refinery will have a capacity of 4 million tonnes per annum and will primarily process crude oil from the Sangomar field.
- The project is estimated to require an investment of between $2 and $3 billion and will create over 15,000 direct jobs during the construction phase.
- The Senegalese government aims to use the new refinery to meet domestic demand for refined products and to export to neighboring countries.
