Funding Alternatives for EPC Firms in West Africa


West Africa’s vitality sector options a variety of funding alternatives for engineering, procurement and development (EPC) corporations. Untapped oil and gasoline reserves are poised to place the area as a future vitality hub for Africa whereas new licensing rounds proceed to bolster the area’s dedication to accelerating exploration and manufacturing. Aggressive upstream fiscal phrases coupled with a give attention to sustainability, native content material, capability constructing frameworks and its proximity to European markets current important alternatives for worldwide participation and funding. 

Upstream Improvement

Final month, international oil firm Woodside Vitality commenced oil manufacturing from the Sangomar discipline, offshore Senegal, turning the nation into an oil producing nation. In the meantime, in Could, an FPSO vessel with a processing capability of 500 million normal cubic ft of gasoline per day arrived on the Larger Tortue Ahmeyim (GTA) LNG discipline improvement, straddling the border of Mauritania and Senegal. GTA is anticipated to return on-line by This fall, 2024, positioning the MSGBC area as a gasoline producer and exporter.

The area itself boasts greater than 40 trillion cubic ft (tcf) of pure gasoline and 1 billion barrels of oil awaiting extraction. In Mauritania, 22 blocks can be found for leasing, with ten extra to be provided in a brand new licensing spherical this 12 months. Alternatives within the area’s upstream sector span EPC, drilling and venture design companies. Low-carbon applied sciences for corporations specialised in environmental companies and related energy infrastructure for business operations additionally current profitable funding alternatives within the trade.

Vitality Era

Mauritania goals to attain common vitality entry by 2030 and is looking for as much as $20 billion in funding to develop its gasoline market. Moreover, Senegal is poised to construct a brand new gas-to-power plant close to town of Saint-Louis that includes an preliminary capability of 250 MW expandable to 500 MW.

Funding alternatives for vitality era in West Africa embody the event of LNG bunkering infrastructure, gas-to-power methods, gas-to-liquids and LNG export services. Making certain energy sector stability within the area is backed by favorable authorities insurance policies and financial frameworks. The Plan for an Rising Senegal and Mauritania’s Fuel Grasp Plan Highway Map showcase the area’s vitality resilience and trade growth ambitions.

Inexperienced Hydrogen

Final month, transitional vitality group Chariot Vitality finalized the feasibility research for a ten GW inexperienced hydrogen project in Mauritania – Challenge Nour. The nation has bold plans for large-scale initiatives geared toward producing 12.5 million tons of inexperienced hydrogen yearly by 2035. Mauritania additionally goals to seize as much as 1.5% of the worldwide hydrogen market and as much as 1% of the worldwide inexperienced metal market by 2050.

Inexperienced hydrogen manufacturing applied sciences are seeing a wave of curiosity from worldwide buyers. Alternatives for funding within the sector embody energy era, manufacturing processes in industries comparable to steelmaking and cement manufacturing, gasoline cells for electrical automobiles, heavy transport, and inexperienced ammonia manufacturing for fertilizers, refrigeration and electrical energy grid stabilization.

Pipelines

Senegal’s deliberate gas-to-power plant close to Saint-Louis can be equipped from the GTA discipline via a 400km gasoline pipeline, connecting the sector to Saint-Louis, Dakar and Mbour. The pipeline is anticipated to be accomplished by the tip of 2025. In the meantime, in September final 12 months, South Africa’s EPCM Holdings was tasked with finishing up technical and business assessments of doable routes from the GTA and BirAllah offshore fields to gas-to-power initiatives in Mauritania.

Following the graduation of topographic surveys within the northern part of the Nigeria-Morocco Fuel Pipeline in Could this 12 months, the venture has reached a vital milestone in its improvement. The pipeline will stretch alongside the West African coast, connecting Nigeria to Morocco and Europe via Benin, Togo, Ghana, Ivory Coast, Sierra Leone, Guinea-Conakry, Guinea-Bissau, The Gambia and Senegal. Upon completion it can hook up with the present Maghreb-Europe Fuel Pipeline.

Throughout the area, EPC corporations have alternatives to take part in new pipeline development, pipeline growth and upgrades, rehabilitation and upkeep, gasoline storage services, monitoring and management methods and digital options.

Renewables

Guinea-Conakry, referred to as the Water Tower of West Africa, options nearly 1,300 watercourses for hydropower era. Mixed with Niger, Senegal and The Gambia, West Africa has the potential to generate as much as 6 GW of electrical energy. In January, the federal government of Mauritania entered financing agreements for 2 photo voltaic initiatives price a complete of $289.5 million, protecting solar energy era, transitional electrical energy interconnection and rural electrification.

Renewable vitality improvement affords an array of funding alternatives for EPC corporations. Utility scale photo voltaic and wind venture, vitality storage methods, hybrid vitality methods, decentralized energy initiatives and grid modernization and infrastructure current profitable alternatives for corporations aiming to enter West Africa’s renewable vitality market.

Discover alternatives, foster partnerships and keep on the forefront of the MSGBC area’s oil, gasoline and energy sector. Go to www.msgbcoilgasandpower.com to safe your participation on the MSGBC Oil, Fuel & Energy convention. To sponsor or take part as a delegate, please contact gross sales@energycapitalpower.com.

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