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Senegal is on track for first gas production from the Greater Tortue Ahmeyim project in the first quarter of 2024. With first gas, the country anticipates an increase in revenue generation and the introduction of new domestic energy supplies, thereby creating opportunities for the development of other economic sectors such as agriculture.
The agriculture sector employs more than 60% of the Senegalese people, and is therefore essential to the country’s economy.
The nation has an abundance of water and fertile land, making it ideal for grain and horticulture production. However, the sector is largely made up of sustenance farming, with significant levels of investment and energy required to industrialize the industry.
President Macky Sall‘s economic agenda recognizes agriculture as an engine of development, and his administration committed to investing $4 billion in the industry between 2019 and 2023 under the Acceleration of Senegalese Agriculture (PRCAS II) initiative. Massive investments in irrigation and rural roads, access to credit through the establishment of a Guarantee Fund, the construction of storage facilities, the expansion of the fishing industry, and the establishment of an agricultural stock exchange market represent key features of the agricultural plan. With first gas, the country is well positioned to meet these objectives while stimulating further growth across the promising agricultural industry.
As expressed by Thierno Ly, Director General of the country’s national oil company Petrosen E&P, in an exclusive interview with Energy Capital & Power (ECP), in light of the revenue generated from the initial gas discoveries, “the government is now determined to take additional steps by increasing investments aimed at modernizing and enhancing the agricultural sector, ensuring that the economy is not solely reliant on oil and gas.”
Progress is already being made to develop and industrialize agriculture in the country. Senegal Fertilizer Company (Sefco), a Petrosen subsidiary, is undertaking an ambitious project to build a urea manufacturing facility with an annual capacity of 1.2 million tons. Located at the Ndayane port, the project will be one of the most expensive in Senegal’s history, totaling an estimated $1.45 billion. The facility is planned to begin production by the end of 2027, resulting in lower fertilizer imports, a reduced trade deficit, and a rise in agricultural output. “This will bring the country closer to its goal of food sovereignty,” stated Manar Sall, CEO of Petrosen T&S.
Domestic gas also holds good potential as a means to halve electricity prices and improve rural electrification. Several gas-to-power plants are being built 30 km from the planned port of Ndayane. These include the Malicounda plant, inaugurated in February 2023, and two power plants located at the Sandiara Special Economic Zone, both of which are set to be operational by 2025. The government is targeting universal access to power by 2025 through these initiatives, which would benefit the agriculture industry.
Serigne Diop, Mayor of Sandiara, a town that houses multiple agricultural initiatives, emphasized to ECP that, “Maintaining the cold chain is critical for the export and distribution of agricultural products, particularly fruits and vegetables. Some farmers are compelled to throw away a chunk of their produce due to power outages.”
However, domestic gas production promises to address these challenges, bringing new supplies to the market and advancing agriculture efficiency and productivity. Home to both the Senegal and Gambia rivers, the country has strong agro-climatic conditions for farming a variety of crops, and with much of the sector untapped, first gas is set to fuel a wave of agriculture developments in Senegal.
