Image credit: Bigstock
In an official visit to Senegal on the 21st of May, 2022, German Chancellor H.E. Olaf Scholz affirmed Germany’s intent to partner with the west African nation in the exploration and development of its world-class natural gas reserves. Senegal forecasts first Liquefied Natural Gas (LNG) production of 2.5 million tons next year alone with increases of up to 10 million tons by 2030, taking a leading role in Africa’s emerging gas markets.
With these expected outputs, Senegal is ideally positioned to supply German and other European markets aiming to cut back on their reliance on Russian gas. The Chancellor’s inaugural trip to Africa will conclude in South Africa with both Senegalese and South African governments receiving official guest invites to attend the G7 summit in Germany this June, along with the governments of India and Indonesia.
German Chancellor, H.E. Scholz’ visit to Senegal strengthens the two countries’ relations at this pivotal time in world geopolitics, building from foundations laid in an earlier visit from Germany’s President, H.E. Frank-Walter Steinmeier to Dakar in late February. This three-day visit saw the President commend his Senegalese counterpart on the nation’s key role as a stable democracy in the region, expressing hopes for new impetus in Senegal and Germany’s long-standing partnership.
To date, the German government has supported Senegal by providing some €900 million in project funding for sustainable development. Bilateral trade between the two nations is worth €150 million and a double taxation agreement is in the pipeline. Senegal is also one of the partner countries in the G20 Compact with Africa initiative, launched during the German G20 Presidency of 2017 to promote African economic investment by improving conditions for investment. The two countries’ partnership is further cemented by infrastructure projects such as, the German firm, BioNTech unveiling game-changing mobile vaccine production labs for both Senegal and South Africa this year.
At the G7 Summit this June, Senegal and South Africa will join Germany in dialogues geared towards finding a common position on the Russia-Ukraine conflict. Discussions are also expected on resolving the climate change emergency and on Germany’s energy development partnership with Senegal, which could serve as being crucial in the lead-up to this year’s COP 27 event in Egypt. Last year saw Germany and the United States sign a just energy transition partnership agreement with South Africa, assisting the southern African nation in its efforts to rapidly phase-out polluting coal energy and a similar agreement is currently in the works for Senegal.
Natural gas and LNG in particular boasts a carbon footprint approximately 70% heavier than that of traditional heavy fuel oils, and Germany’s recent support in the construction of a solar farm for Senegal demonstrates the European country’s firm commitment to Africa’s sustainable energy transition. Senegal, like much of west Africa, is host not only to globally significant gas reserves but also world-class solar potential but remains dependent on imports for 64% of its energy. Through this new potential partnership with Germany, not only will Europe receive major gas imports required for facilitating divestment from Russian commodities, but Senegal can also expect leading expertise, technology and investment for the development of the power goldmine on which it sits.
Join policymakers, financiers and industry executives at the upcoming MSGBC Oil, Gas & Power Conference & Exhibition this September in Dakar and hear H.E. President Macky Sall’s opening address; meet with investment delegations from the United States, Australia, Europe, Asia and the Middle East; and participate in advancing the future of African energy in the gas rush and beyond.
