December 31, 2024 is a day to be marked with a white stone. It was in fact on this last day of the year that the first cubic meters of gas emerged from the depths of one of the wells of the important Grand Tortue Ahmeyim (GTA) gas deposit located 115 km offshore. of the Mauritian-Senegalese coasts and at a depth of 2,850 meters.
This field was discovered in 2015, but the investment decision will not be taken until 2018. Its entry into production, initially planned for 2022, has been postponed several times to finally take place on December 31, 2024. A signed press release by the ministers in charge of the energy sector of the two countries announces that the project has started its “phase test”, and that “the opening of the first well (…) paves the way for the commercialization of gas, which should begin very soon».
It is one of the deepest and most complex gas development projects in Africa. “This is a remarkable milestone for this megaproject. The first gas flow is a concrete example of meeting current global energy demand and reiterates our commitment to helping Mauritania and Senegal develop their natural resourcessaid Gordon Birrell, Executive Vice President of Production and Operations at BP, leader of the consortium in charge of operating the GTA.
According to BP, “GTA Phase 1 gas will be fed into the GTA FPSO approximately 40 kilometers offshore, to remove water, condensate and impurities. It will then be transferred via a pipeline to a floating liquefied natural gas (FLNG) vessel located 10 kilometers offshore, to be cryogenically cooled, liquefied and stored before being transferred to LNG carriers for export. Part of the gas will be intended to meet the growing energy demand of the two host countries.»
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From its first year, the floating installation located astride the Senegalese-Mauritanian maritime border, will produce 2.3 million tonnes of liquefied natural gas per year during its first phase and 5 million tonnes during the second, according to whether or not the project developers decide to double the capacity of the infrastructure.
GTA is the first LNG – liquefied natural gas – project in Senegal and Mauritania. If the project players – BP, Kosmos, SMH and Petrosen – decide to invest in the second phase, Mauritania and Senegal could become an LNG production hub.
The impacts of this new resource will be undeniable if the two States make good use of it. Gas exploitation is expected to generate significant financial resources for both countries. These inflows of money must come from royalties, the sale of part or all of the quota of the two States and various other taxes.
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In addition to this financial windfall, the exploitation of the deposit should allow both countries to have the gas resources necessary for their internal needs. These resources can be used, after processing, to satisfy domestic needs (butane gas) and above all to power thermal power plants thanks to relatively clean energy.
By contributing to the development of the use of butane gas, the two countries can contribute to reducing the use of charcoal for cooking food, thus saving forest heritage.
As for the use of gas in thermal power plants to produce electricity, it will make a significant contribution to reducing the energy deficit in both countries and to improving universal access to electricity in both countries. .
Furthermore, GTA will constitute a new source of gas supply in the form of LNG for the European market close to the West African coasts. The export of this resource will generate foreign currency resources which will contribute to improving the export earnings of the two countries and their foreign exchange reserves.
At the macroeconomic level, the GTA project should revitalize the economies of the two countries and stimulate their growth in 2025. The International Monetary Fund (IMF) expects Mauritania’s growth rate to triple in 2025.
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According to some estimates, over 20 years, the project should bring in between 80 and 90 billion dollars in revenue for Mauritania and Senegal. However, these revenues also depend on the oil costs incurred by BP which owns 61% of the project. However, the first phase of the project saw an explosion in costs of around 60% of the investments initially planned.
An additional cost linked to the Covid-19 pandemic and the cumulative delay of 40 months. This additional cost will have an impact on future revenues.
Faced with such a review of rising costs, the two countries requested audits. The Tunisian firm Samir Labidi and the French firm Mazars concluded that BP had significantly overinvoiced oil costs. And the two countries do not intend to pass these overbillings at a loss or profit.
After the start of the project has become effective, the two countries should soon take action to push BP to review its costs knowing that the financial benefits of the project should initially be used to reimburse the expenses of the companies having invested in the project, that is to say BP. GTA is a large-scale field with reserves estimated at 425 billion cubic meters of gas.
