Senegal National Gas Network Company Seeks €530 Million Financing to Build 3 Gas Transmission Pipelines

en.Wedoany.com Reported - On October 15, Pape Momar Lo, General Manager of Réseau Gazier du Sénégal (RGS), Senegal's state-owned natural gas network operator, disclosed that the company is seeking a total of €530 million in financing for three natural gas transmission pipeline projects, aimed at connecting offshore natural gas resources, gas-fired power plants, and industrial users. Construction of the three pipeline segments is planned to commence in 2027 and become operational in 2029. Relevant technical studies have been completed, and the government is seeking project financing partners.

The pipelines to be financed and constructed are divided into three lots: Green, Blue, and Orange. On October 12, the plan announced by RGS at the Africa Energy Week investment promotion conference held in Cape Town, South Africa, shows that the Green lot is 110 kilometers long, with an estimated investment of €220 million and a designed transmission capacity of 300 million standard cubic feet per day. It connects the northern natural gas network with the central transmission system, delivering natural gas from the Greater Tortue Ahmeyim (GTA) gas field to gas-fired power generation facilities in the central and southern regions.

The Blue lot is planned to be 100 kilometers long, with an estimated investment of €180 million and a designed transmission capacity of 713 million standard cubic feet per day. The pipeline connects the Yakaar-Teranga gas field and the Green lot, supplying natural gas to gas-fired power stations and industrial users in areas such as Mboro, Tobène, Cap des Biches, and Sendou. The Orange lot is 45 kilometers long, with an estimated investment of €130 million and a designed transmission capacity of 300 million standard cubic feet per day, mainly connecting the Sendou and Malicounda power stations and surrounding industrial facilities.

RGS issued an international prequalification notice for the three pipeline projects on September 3, 2026. The procurement scope covers engineering design, equipment supply, construction, and financing, adopting an engineering financing model with deferred payment arrangements. The deadline for prequalification applications for the three lots was October 7. Technical materials previously published by RGS show that the relevant lots have completed front-end engineering design, environmental and social impact assessment, and resettlement action plan.

RGS General Manager Pape Momar Lo stated that the government is seeking project partners capable of undertaking approximately 15% equity financing. The proposed pipeline assets will adopt a concession model with a 15-year term, renewable, with a tariff mechanism planned to cover capital expenditure and operating costs, targeting an internal rate of return of 20%. These conditions constitute the current commercial proposal offered to potential investors.

The northern lot of Senegal's natural gas network held its first pipe-laying ceremony on September 10 in Gandon. The related project investment is approximately €275 million, connecting the GTA gas field supply system to a 250 MW gas-fired power station in the northern part of the country. RGS disclosed at the October investment promotion conference that the completion rate of this lot is 25.8%. The subsequent three lots will connect with the northern pipeline and integrate into the natural gas resource supply systems of Yakaar-Teranga and Sangomar.