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Energy Chamber Delegation Visits Dakar Refinery in Support of Increased Funding for Infrastructure Rollout across Africa

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 A delegation from the African Energy Chamber AEC www EnergyChamber org the voice of the African energy sector visited the Soci t Africaine de Raffinage SAR crude oil refinery in Dakar to observe ongoing developments aimed at upgrade the facility and understand the role refinery modernization will play in boosting Senegal s downstream market The delegation composed of NJ hellip
Energy Chamber Delegation Visits Dakar Refinery in Support of Increased Funding for Infrastructure Rollout across Africa

NNN: A delegation from the African Energy Chamber (AEC) (www.EnergyChamber.org), the voice of the African energy sector, visited the Société Africaine de Raffinage (SAR) crude oil refinery in Dakar to observe ongoing developments aimed at upgrade the facility. and understand the role refinery modernization will play in boosting Senegal’s downstream market.

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The delegation composed of NJ Ayuk, CEO of AEC, and Abdur Omidiya, CEO of AEC West Africa, joined Marième Ndoye, CEO of SAR, in strongly supporting SAR’s efforts to upgrade its facilities.

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The AEC visit supports its drive to catalyze investment in the construction of new refineries and the modernization of existing facilities in Africa to maximize the commercialization of national energy resources, while reducing dependence on energy imports.

Despite having massive oil and gas reserves, African hydrocarbon-producing countries such as Senegal, Nigeria, Algeria, Angola, Namibia, Kenya and South Africa are highly dependent on energy imports due to a lack of adequate refining capacity and investment in infrastructure development. As a result, the continent is struggling with chronic fuel shortages and high energy costs.

Senegal, for example, despite having more than a billion barrels of crude oil reserves, which can be exploited and processed locally to meet electricity production and other energy needs, relies heavily on energy imports to meet demand. domestic demand. SAR’s Dakar Refinery, the only refinery in Senegal, currently refines 1.2 million metric tons (MT) of crude oil per year, most of which comes from Nigeria and is unable to meet Senegal’s domestic demand of around 1 .6 million MT.

The Dakar refinery upgrade, announced in 2018 but delayed due to lack of funding, will increase diesel and liquefied petroleum gas processing capacity by 15-20%, from 1.2 million tonnes to 1.5 million tonnes. tons of crude per year. With Australian oil and gas company Woodside and Senegal National Oil Company Petrosen expected to start crude oil production at the Sangomar field in 2023, the refinery upgrade will play a critical role in allow Senegal to meet its energy needs using local resources. .

In addition, with bp and US oil company Kosmos Energy also set to start production at the $4.8 billion Grand Tortue Ahmeyim gas project in 2023, the refinery will play a major role in driving the gas market expansion agenda. of the government. Today, Senegal can only process 10,000 MT of butane gas, yet the country’s needs are around one million metric tons, which is mainly used for cooking.

Having supported the recapitalization of SAR through the acquisition of a 46% stake in the company in a $720 million recapitalization deal through Petrosen, the Senegalese government prioritizes investments in infrastructure development through the formation of public-private partnerships.

“We thank HE President Macky Sall for his strong support for SAR, creating an environment for this to work and ensuring that there is no crisis in Senegal due to fuel shortages,” says AEC’s Abdur Omidiya.

With SAR entering into collaboration agreements with the German technology company, SAP, and the Franco-American service company, TechnipFMC, to increase their technical and financial capacity to implement upgrades at the Dakar refinery, the ACS strongly supports SAR and African governments engaging in partnerships. that improve the environmental performance of clean fuels and fuel refineries.

“Upgrading existing refineries will ensure that Africa remains at the forefront of being a climate champion, while maximizing the exploitation of our hydrocarbon resources to drive industrialization progress. We need to support the work of the SAR and Anibor Kragha leadership of the African Association of Refiners and Distributors,” states NJ Ayuk, adding: “Senegal is emerging as one of Africa’s hydrocarbon strongholds due to the increased focus on exploration activities. . However, like many African producers, the lack of adequate refinery capacity prevents the country from harnessing its energy resources to address energy poverty and stimulate economic growth. The work being done by SAR will further fuel the growth of Senegal’s hydrocarbon market. This is what we need in Africa: more investment and more modern refineries to be able to produce clean fuels in a better way. SAR’s efforts put Africa in the right direction of using its own energy resources to make energy poverty history by 2030.”

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