QCIP under discussions for an Integrated LNG & Power Complex in Senegal

QCIP under discussions for an Integrated LNG & Power Complex in Senegal

Qatar Gulf News – Doha, Qatar, Friday 26 August 2016. QCIP and SENELEC (National Electricity Company of Senegal) are closely discussing the development of an Integrated LNG/NG, Power & Maritime Complex includes CCGT power plant, FSRU units, NG infrastructure, industrial & downstream facilities, LNG/NG supply, marketing & distribution and power/electricity trading. Initially, the Complex consists of a 600 MW power plant based on Liquefied Natural Gas (LNG) with supporting gas infrastructure including the Floating Storage Re-Gasification Unit (FSRU) and associated terminal and pipelines to the power plant (Project).  Additionally, the project also requires gas pipelines, national grid facility operations, balancing stations, pumped storage facilities, and other downstream facilities.

The plant and FSRU will be located near to the Cap de Biche site to allow for the interconnection to both the transmission network and the existing gas pipeline to send gas to Kauone Power plant. In addition to that, the project also will consists of gas pipelines, national grid facility operations, balancing stations, pumped storage facilities, and other downstream facilities. The power plant and associated infrastructure will be constructed, financed, and developed by the Consortium over a period of 30 months (or a shorter period) following financial close of the Project. The development of this project will allow Senegal and Senelec to distribute reliable power and gas to the various industrial sectors of Senegal. It will provide much needed reserve capacity to allow for Senelec to redevelop and close its old and existing diesel and oil fired power plants at affordable power tariffs in a more efficient and clean process.

It will also allow Senegal to develop a gas infrastructure and industry utilizing the LNG gas for fertilizer and small petrochemical projects to be used for exporting to neighboring countries both electricity and gas, The proposal outlines the various development processes, timeline to develop the project as well as the requirements for establishing a dedicated gas import company called Senegas to be supported both by the government of Senegal and the private sector. The proposal is based on the work already carried out through various reports, historical, and background information extracted from reports prepared by Enercap, Poten & Partners, Mitsui, Nebras Power, GE, and others who have studied in further detail the Senegal requirements to develop an LNG fired power plant in Senegal.

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Commences appraisal drilling program offshore Senegal (Figure 1&2)

Senegal has been seeking to diversify its energy mix away from petroleum products and the principal market for natural gas in Senegal is the power sector. A number of studies have been done in the last two years showing how Senegal using LNG as an alternative fuel for its power and gas sector would significantly reduce the cost of burning HFO and diesel in its existing and planned thermal power plants. The use of oil and diesel in power plants leads to low efficient power generation and increases the operating costs of the electricity sector as well as the environmental impact of burning these types of fuels on the air quality in the surrounding areas. The recent drop in oil pricing and the abundance of LNG supplies now on the market has resulted in a opportunity for countries to diversify their energy mix away from oil and diesel fired generation to a cleaner and more efficient fuel – LNG.

Kosmos Energy (U.S. Upstream Corporation) announced that is working toward commercialization of LNG project after major natural gas discovery offshore in Mauritania and Senegal (Figure 1&2). SENELEC (National Electricity Company of Senegal) is based in Dakar and is the largest power producer and electricity distributor of Senegal.

Sources: QGN, Reuters, QGA, BBC, Doha News, Gulf Times, CAYE Global News, NNC Global