Senegal faces difficult decisions as it navigates a transition to becoming an exporter of liquefied natural gas (LNG) with a pipeline of new projects, largely targeting Europe. The need to develop new sources of government revenues must be balanced with meeting domestic energy needs and avoiding locking in an economically unsustainable energy pathway.
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- 30
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- Canada
- Rights
- IISD, 2024
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Table of Contents
- Table 1. LNG projects in development in Senegal 12
- Box 1. Mozambique LNG revenue projections are also similar 19
- Figure 1. Senegal’s LNG projects in development 11
- Figure 2. LNG export projects in Senegal, Nigeria, and Mozambique 15
- Figure 3. Change in natural gas supply under the NZE scenario by 2050 16
- Figure 4. Global LNG breakeven analysis 17
- Figure 5. Breakeven gas prices for selected Senegalese gas assets 18
- 1.0 Introduction 10
- 2.0 Overview of LNG Projects 11
- 2.1 Socio-Economic Impacts 13
- 2.2 Energy Access 13
- 2.3 Environmental Impacts 14
- 3.0 Economic Factors 15
- 3.1 Business Case 15
- 3.2 Revenue Generation 16
- 3.3 Economic Diversification Concerns 19
- 4.0 Risks of Scaling Up LNG Production 20
- 4.1 Risk 1: Much of the revenue from LNG may never reach the government budget 20
- 4.2 Risk 2: Long-term export demand for gas from Senegal is uncertain 20
- 4.3 Risk 3: LNG expansion may not sufficiently contribute to domestic energy security 21
- 5.0 Conclusions 22
- 6.0 Recommendations 23
- References 24
