Following the start of commercial LNG operations at the Greater Tortue Ahmeyim project in 2025 and first oil production from the Sangomar field in 2024, Senegal is making strategic infrastructure investments to strengthen domestic supply chains and enhance value addition across its rapidly growing hydrocarbon industry. The West African nation recently raised its 2025 oil output forecast for the Sangomar project to 34.5 million barrels while pursuing phase two of the Greater Tortue Ahmeyim development, underscoring the sector’s rapid expansion.
Through targeted investments in pipelines, refineries, terminals and storage facilities, Senegal is positioning its oil and gas sector as a catalyst for long-term economic transformation rather than simple resource extraction. Several major infrastructure projects are currently underway or in advanced planning stages, representing billions of dollars in investment.
Senegalese downstream company Elton Oil is advancing construction of the Dakar Gas Terminal, a critical infrastructure project aimed at enhancing the nation’s energy security. The terminal will feature storage capacity of 140,000 cubic meters of LNG and is designed to support regasification and distribution to various sectors, including power generation, industry and maritime transport. In 2024, Elton Oil signed an offtake agreement with national utility Senelec to provide gas feedstock for power generation. The company expects to complete the project by the fourth quarter of 2025, providing a crucial link between offshore gas production and domestic consumption.
Moroccan conglomerate Akwa Group plans to build an oil storage and gas processing facility in Bargny-Sendou, located 30 kilometers from Dakar, as part of Senegal’s downstream expansion strategy. Launched in July 2025, the project includes storage for crude and refined products as well as gas processing infrastructure to support local consumption and exports. Integrated into the new Senegal Minergy Port, the facility aims to strengthen energy security and position Senegal as a regional distribution hub. Construction is expected to start in 2026, with completion targeted for 2028 to coincide with the port’s full commissioning.
Downstream Senegalese company Terangaz is developing an LPG storage and filling terminal at the port of Bargny-Sendou, backed by a 7 billion CFA franc loan from the West African Development Bank. The facility will add about 13,000 cubic meters of storage capacity and an annual throughput of 150,000 tons, supporting Senegal’s clean cooking and energy access goals by providing alternatives to firewood and charcoal. The project is set to create roughly 400 jobs and reduce household reliance on traditional biomass fuels. Integrated within the Senegal Minergy Port complex, it complements existing private LPG infrastructure, including Oryx Energies’ nearby terminal.
In a major downstream development that could transform Senegal’s refining capacity, Sedin Engineering, a subsidiary of China National Chemical Engineering Company, has been contracted to construct a second refinery and petrochemical plant at Senegal’s national refinery, Société Africaine de Raffinage. The $5 billion facility, dubbed SAR 2.0, will add 4 million tons of annual refining capacity, addressing the existing shortfall where the current refinery processes only 1.5 million tons per year. The new facility is expected to utilize feedstock from the offshore Sangomar oil field, creating an integrated value chain from production to refining. Construction will start in 2026 with operations beginning by 2029.
Senegal is also advancing construction of a 472-kilometer integrated gas pipeline system designed to transport 2.5 billion cubic meters of gas annually across five key segments: Northern (85 kilometers), Blue (100 kilometers), Orange (45 kilometers), Red (17 kilometers) and Green (110 kilometers). The pipeline aims to strengthen Senegal’s gas distribution network and enable the monetization of offshore gas discoveries for domestic use. Full completion is anticipated by 2029. Phase 1 procurement and Technical FEED studies for the Green segment are ongoing, while environmental and social assessments are expected to start in the third quarter of 2025. The Senegalese Gas Network, a subsidiary of state oil company Petrosen, is leading the development, with the Sicilsaldo Group, Enereco and Micoperi consortium awarded the Engineering, Procurement and Construction contract for the Northern Segment.
Source: energycapitalpower.com