The first phase of the Greater Tortue Ahmeyim (GTA) offshore field development is on track for first production in 2024. A collaboration between Senegal and Mauritania, the two countries will share gas resources and revenues from the project on a 50/50 basis, creating a wealth of economic opportunities for the MSGBC region.
Economic Transformation
Revenues generated from the GTA project are poised to transform the regional economy. The collective surge in regional GDP growth is projected at 6.58%, with Senegal spearheading with an impressive 10.6%, primarily due to gas revenues. Mauritania mirrors this momentum with a 6.5% real GDP expansion, driven by the GTA project as well as iron ore and gold production. The Gambia, Guinea-Bissau and Guinea-Conakry are also set for growth, fueled by strategic infrastructure investments and regional energy trade.
Infrastructure Development
Propelled by this economic growth, the MSGBC countries have outlined significant infrastructure plans, partly funded by gas revenues. Primarily, gas-to-power initiatives such as Senegal’s 360 MW Sandiara plant and Mauritania’s 500 MW N’Diago plant aim for universal electricity access. Additionally, the Mamelles desalination plant in Dakar will utilize gas to supply water to the capital.
Beyond powering utilities, these countries aspire to fortify diverse sectors. The Digital Technology Park in Diamniadio, Senegal, aims to boost the ICT industry by creating over 20,000 jobs. Similarly, the Special Economic Zone in Nouakchott aims to attract international businesses, mirroring successful models like the UAE free zones.
Regional Trade
First gas is expected to boost regional trade in the MSGBC region. Currently, various initiatives are underway to rehabilitate and modernize regional ports in line to support anticipated energy trade. Examples include the ports of Banjul in The Gambia and Bissau in Guinea-Bissau. Additionally, the construction of the NDayane Maritime Hub – situated in Senegal and poised to become the largest port in West Africa – further underscores the region’s commitment to enhancing its maritime infrastructure and supporting regional trade.
In addition to ports, plans for roads and railways – like the Transguinean network, connecting Guinea-Conakry and Guinea-Bissau – are underway. Regional collaboration extends beyond the MSGBC neighbors, with Mali, Burkina Faso, and Niger expressing interest in importing energy produced in Senegal and Mauritania.
Boost in Exploration
With global oil demand expected to rise 10% by 2028 and global gas demand set to peak in 2030, the success of the GTA project is likely to inspire other international oil companies to invest in exploring the MSGBC basin. Companies active in the region are already prioritizing new developments while opportunities in untapped acreage are expected to entice new players. British multinational bp, for example, is eyeing a final investment decision for the BirAllah project – with an estimated output of 10 million tons of liquefied natural gas per year – in 2025 while America’s Kosmos Energy has taken over operatorship of the Yakaar Teranga field in Senegal – boasting 25 trillion cubic feet of gas reserves.
Yet, the basin remains largely unexplored, specifically in markets such as The Gambia, Guinea-Bissau, and Guinea-Conakry. Governments and national oil companies in these regions are revitalizing the energy sector to attract investment and first gas from GTA is expected to trigger newfound commitments in 2024 and beyond.
