Senegal is progressing with plans to construct a second oil refinery under a $5 billion expansion of its state-owned refining company, Société Africaine de Raffinage (SAR). The project aims to enhance regional energy independence and is expected to bolster Senegal's refining capacity, reducing reliance on imported refined products.

The new refinery is projected to increase SAR's annual refining capacity from 1.5 million tonnes to 5 million tonnes, meeting domestic demand and creating export opportunities to neighbouring West African countries. The expansion is part of Senegal's broader strategy to leverage its domestic oil resources, including production from the Sangomar offshore field, to strengthen its energy sector.

In September 2024, SAR signed an agreement with China's Sedin Engineering to explore the construction of the second refinery and a petrochemical plant. This collaboration is expected to contribute to the development of high-value products such as plastics and chemicals, further enhancing Senegal's industrial capabilities.

The expansion is also supported by the African Export-Import Bank (Afreximbank), which is in advanced discussions to provide $500 million in syndicated finance for the upgrade of SAR's existing refinery. This financing aims to modernise the current facility and increase its production capacity.

The development of the second refinery is anticipated to play a significant role in Senegal's economic growth, positioning the country as a key player in West Africa's energy sector.