The Yakaar-Teranga project, led by the Société des Pétroles du Sénégal (Petrosen) in partnership with Kosmos Energy, represents a key milestone in the energy transformation of Senegal. Scheduled for the first quarter of 2025, the final investment decision (FID) will determine the launch of domestic gas production, with a production target of between 150 and 250 million standard cubic feet per day (MMSCFD). This volume will be mainly dedicated to the production of electricity and industrial uses, such as supplying the urea plant developed by Petrosen Trading & Services.
A Project at the Heart of Senegal’s Energy Independence
By strengthening the national capacity to produce energy from local resources, the Yakaar-Teranga project is part of Senegal’s overall strategy aimed at reducing its dependence on energy imports. The initiative also responds to a growing demand for energy to support the country’s industrial expansion. According to forecasts, revenues from the exploitation of these gas resources should reach approximately 576.3 billion FCFA between 2025 and 2027, thus making it possible to finance priority investment programs in strategic social sectors.
Significant Economic Impacts
The economic impact of Yakaar-Teranga is expected to extend well beyond the energy sector. The tax revenue expected from this project will in fact be allocated to essential projects in the areas of health, education, and water and sanitation infrastructure. For the year 2025, these revenues should amount to 127.7 billion FCFA, before increasing to 205.4 billion FCFA in 2026 and 243.2 billion FCFA in 2027. This financial contribution will be essential for the Investment Program Public (PIP) of the Senegalese government, targeting the development of basic infrastructure and the creation of local jobs.
Stabilization of Energy Costs and Industrial Development
In addition to the direct economic benefits, the Yakaar-Teranga project is also an asset for the stability of energy prices in Senegal. By reducing dependence on imports, the country will be able to reduce its vulnerability to fluctuations in hydrocarbon prices on world markets. This stability is crucial for the emerging industrial sector, where energy costs represent a competitiveness issue. Furthermore, the development of gas infrastructure could catalyze new industrial investments, thereby strengthening Senegal’s role in the West African energy value chain.
A Progress in the Energy Transformation of West Africa
The prospect of domestic gas production places Senegal among the regional leaders in the energy transition in Africa. With the completion of Yakaar-Teranga, the country is on the verge of reaching an unprecedented level of energy self-sufficiency, thus supporting its socio-economic development and strengthening its position in the West African energy market. This development could also encourage other countries in the region to explore and exploit their own natural resources to meet the continent’s growing energy needs.
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