Senegal’s Yakaar-Teranga Gas Project Set at $7.5bln as State Eyes Energy Import Substitution

Mintesinot Niggusie

Yakaar-Teranga, Senegal’s offshore gas development, is projected to require about 7.5 billion US dollars in investment, according to state-owned Petrosen, as the country advances plans to scale up domestic energy production and industrial capacity.

**Mouhamadou Diop**, CEO of Petrosen’s trading arm, said the project could substantially reduce Senegal’s annual energy subsidy bill, estimated at 1 billion US dollars, while helping displace imported fuels.

The development is part of Senegal’s broader hydrocarbons push following the start of production at the Sangomar field. BP Plc withdrew from the project in 2023, and Kosmos Energy’s contract is due to expire in July, potentially leaving Senegal as the sole stakeholder.

Diop said the project has been structured in phases. The first phase requires 2.5 billion US dollars to supply 300 million cubic feet of gas per day. A second phase, estimated at 5 billion US dollars, will focus on downstream industries like fertilizer, petrochemicals, steel, and cement.

“The goal is to use revenues that you get from the oil and gas to actually invest it in exploration, to be an operator and develop the project ourselves,” Diop added.