Senegal's gas production should ease its electricity prices, minister says (updated)

Woodside Energy

17/09/2026 19:02

Adds further minister comment, background on former government, details on projects in paragraphs 5-13
Senegal 'open to new partners' in energy sector, minister says
Government plan to lower energy costs involves subsidy reforms 
Senegal started producing oil in 2024, announced first gas in 2025
By Anait Miridzhanian
DAKAR, Sept 17 (Reuters) - Senegal plans to shift towards using more domestically produced natural gas to lower the cost of electricity generation, as it aims to cut its dependence on imported fuels whose prices have risen sharply this year, the West African country's energy minister told Reuters. 
Expanding oil and gas production in recent years has helped boost Senegal's economic growth and increase exports. But soaring energy prices, stemming from conflict in the Middle East this year, have increased its fuel subsidy costs. 
Energy Minister El Hadji Abdourahmane Diouf, ​in a written reply to questions, said Senegal's priority is to lower the actual cost of electricity by developing domestic natural gas, expanding renewable energy capacity and improving operational efficiency. 
Senegal is open to working with new partners to help develop its resources, he said, adding companies such as BP BP.L, Kosmos KOS.N and Woodside WDS.AX are strategic partners that have played a decisive role in recent domestic gas discoveries, development and production. 
The government, which came to power in June, said earlier this month that the goal was to eventually reduce energy costs by up to around 30%, partly through subsidy reforms.  
"In the short term, the government is shifting from broad-based support to targeted subsidies focused primarily on the most vulnerable households, public transportation and strategic productive sectors," Diouf told Reuters. 
"The goal is to improve the efficiency of public spending without reducing consumer protection," he said, adding that no specific reforms have been decided yet. 
     
SENEGAL 'OPEN TO NEW PARTNERS'
Senegal began producing oil in 2024 when Australia's Woodside Energy started production at its Sangomar oil and gas field. Gas production was also announced early last year at the Greater Tortue Ahmeyim (GTA) liquefied natural gas project operated by BP.
In March, before he was ousted, former Prime Minister Ousmane Sonko had criticised the BP contract and said Senegal was cancelling some exploration licenses. 
In April, national oil company Petrosen received a licence for the Yakaar-Teranga gas field that had been operated by U.S. firm Kosmos, after Sonko's government had briefly last year floated nationalising it. 
In the written interview, Diouf said Yakaar-Teranga is a key project and its gas will be sold on the domestic market and also exported. 
"Senegal remains open to new partners who can support the project's development, in accordance with national interests and under the best technical, economic and commercial conditions," he said. 
The audits and contract reviews launched by the former government aim to strengthen governance in the sector, Diouf added. 

(Reporting by Anait Miridzhanian; Editing by Jonathan Spicer)
((Anait.Miridzhanian@thomsonreuters.com;))