Considered a follow-up to the GTA gas project, the Yakaar-Teranga development is expected to reach a final investment decision this year, opening up new monetisation and power generation opportunities in the region.
Global energy major bp and its partner in the Cayar Offshore Profond block Kosmos Energy are making significant progress on the Yakaar-Teranga gas project, located offshore Senegal.
Seen as a follow-up to the bp-operated Greater Tortue Ahmeyim (GTA) project, which is expected to see first production this year, the project partners are fast-tracking the development of the Yakaar-Teranga project, in the hope of mirroring the success of GTA while opening up new opportunities for power generation and industry growth.
Yakaar-Teranga expands
bp is targeting its second large-scale natural gas development offshore Senegal, with the energy major progressing with the development of the Yakaar-Teranga project. Currently, a feasibility study for the initiative is underway, with the project partners expected to announce a final investment decision for the massive gas development in 2023 with first production expected in 2024. In reality, an opportunity has arisen for Senegal to strengthen the foundations of its hydrocarbon industry while ushering in a new era of economic prosperity through the conversion of gas to electricity.
Triggering new energy production opportunities
The development of Yakaar-Teranga is expected to position the West African country as a global investment destination of choice, with players from across the gas and power value chains mobilising to capture a share of the country's booming industry and associated sectors. With HE President Macky Sall placing gas as a key driver of economic stability and energy security, Yakaar-Teranga will open up new investment opportunities, particularly in the power sector.
The project will be developed in two phases, with the gas produced being used to fuel Senelec's power plants and then distributed regionally. While the MSGBC region represents one of the most electrified regions on the continent, the emerging gas-to-electricity opportunities made possible by Yakaar-Teranga enable Senegal and its regional counterparts to meet national targets for universal access to electricity, improving livelihoods while providing clean electricity to emerging sectors of the economy. In particular, with the rapid expansion of the region's mining, agriculture and manufacturing industries, gas-to-power promises new growth opportunities. According to the World Bank, Senegal's GDP is expected to grow by an impressive 8% in 2023 and 10.2% in 2024, all thanks to natural gas projects like Yakaar-Teranga. With up to 20 trillion cubic feet of natural gas recoverable for exploitation until 2053, Yakaar-Teranga represents a sustainable energy project that will drive Senegal's economic growth for years to come.
What is the next step for the Senegalese E&P?
After the first oil and gas production in the Sangomar oil field and the development of the GTA in 2023 and Yakaar-Teranga in 2024, Senegal is already working to further expand the hydrocarbon E&P space. With proven resources in place, the country is inviting a list of new players to engage in one of the world's most promising E&P areas. Following the launch of the country's first major licensing round in 2020, with 12 proposed blocks, Senegal's Ministry of Petroleum and Energy is currently planning a second round. This potentially larger round is expected to attract strong interest from current and potential players as the region's E&P landscape becomes increasingly attractive in the current high-demand global environment.
As these opportunities open up, the region's premier event for the oil and gas sector, MSGBC Oil, Gas & Power 2023 - to be held in Nouakchott, Mauritania, from 21-22 November, under the theme "Scaling Energy Opportunities in Africa's New Frontier" - will once again connect investors and E&P players to MSGBC opportunities, offering the ideal platform for project updates - including Yakaar-Teranga - ; high-level roundtables; exclusive networking sessions; and deal signing forums.
As the MSGBC region enters a new era of economic growth and prosperity, MSGBC Oil, Gas & Power 2023 serves to stimulate the industry's momentum, providing investors and project developers with the tools they need to develop successful projects, while enabling MSGBC policymakers and companies with the opportunity to secure long-term investment.
Source : Energy Capital & Energy
