Published on 28 Dec 2023

Singapore eyes opportunities in the West African energy sector

Mauritania and Senegal draw interest from Singapore as local firms start to work on extractive as well as renewable energy projects

Singapore investors are taking a fresh look at investment opportunities in West Africa after a string of local firms started delivering on energy projects in Mauritania and Senegal. An eight-member business delegation led by Enterprise Singapore, a government agency that helps local firms expand overseas, visited the two West African countries to look for business opportunities in the oil, gas, and renewable energy sectors.

Singapore firms are participating in two of the three most notable oil and gas projects that straddle the region – the Greater Tortue Ahmeyim (GTA), the Sangomar and the Yakaar-Terang. Local marine engineering firm Seatrium converted an end-of-life liquefied natural gas tanker into a floating liquefied natural gas (FLNG) vessel, a ship designed to liquefy natural gas from offshore gas fields, for the GTA project. It successfully delivered the vessel to its client Golar LNG in November, which is expected to be deployed in production in 2024. GTA is an offshore gas field project that is located withing the maritime border between Mauritania and Senegal. The first phase of the project will produce about 2.5 million tonnes of LNG annually. It is a collaborative effort involving BP, Kosmos Energy, and the national petroleum companies of both Senegal and Mauritania.

Another significant development is the Sangomar oil and gas field, located roughly 100 km south of Dakar, Senegal. Initiated in early 2020, the field is expected to begin oil production in 2024. Singaporean firms are involved, providing floating facilities for this project. MODEC Offshore Production Systems, a Singapore-based subsidiary of Japan’s MODEC, has played a role in the supply of a floating production storage and offloading (FPSO) vessel to Woodside Energy, the project's operator. An FPSO is a ship equipped for processing and storing oil or gas from undersea wells, with capabilities for transferring the extracted resources to tankers or pipelines. MODEC has engaged Singapore’s Keppel Offshore & Marine, now a part of Seatrium Group, to assist with some aspects of the FPSO's construction.

While Singaporean companies are already participating in the region's oil and gas projects, Enterprise Singapore said there remains scope for more companies to contribute their products and solutions. Among other prominent upcoming projects in the region is the ultra-deepwater Yakaar-Teranga gas initiative in Senegal, which is spearheaded by US-based Kosmos Energy. Yakaar-Teranga, one of the most substantial gas discoveries in recent years, features gas with low carbon dioxide content and minimal impurities, simplifying the processing required before transportation and liquefaction. This project is anticipated to become a crucial natural gas source for Senegal’s gas-to-power initiatives. Additionally, the BirAllah gas field in Mauritania, believed to contain around 80 trillion cubic feet of gas, is also a project of significance. In 2022, agreements between the Mauritanian government, BP, and Kosmos Energy were established, setting the stage for the exploration and development of this promising field.
Enterprise Singapore has also identified potential in the hydrogen and renewable energy sectors. Both Mauritania and Senegal have abundant wind and solar resources conducive to produce low-cost hydrogen for exports. Hydrogen, created by splitting water molecules through electrolysis, serves as a clean energy source and a potential fossil fuel alternative. It is termed ‘green’ when produced using renewable energy.

Senegal’s hydrogen industry is in its nascent stages, offering opportunities for investment in production, storage, and distribution infrastructure. In contrast, Mauritania already has a pipeline of renewable hydrogen ventures. Singaporean technology is set to be used in the 10GW Project Nour green hydrogen facility in northern Mauritania, a partnership between Chariot, an Africa-focused energy company, and Total Eren, a renewable energy producer. Earlier this year, Chariot announced the acquisition of ENEO Water, a Singapore-based water solutions provider, which has developed solar-powered reverse osmosis technology to produce desalinated water. In areas where fresh water is a limited resource, such as Mauritania, desalinated water becomes a vital element for green hydrogen production.

Other initiatives in Mauritania include the AMAN project, led by Australia's CWP, expected to produce 1.7m tonnes of green hydrogen or 10m tonnes of green ammonia annually. Additionally, German development and investment firm Conjuncta, in cooperation with the Emirati-Egyptian joint venture Infinity Power, signed a preliminary agreement with Mauritania to develop a US$34bn multiphase green hydrogen complex with a capacity of up to 10 GW, aiming to produce up to 8m tonnes of green hydrogen or other hydrogen-based end products.

References

‘Havfram to install Sangomar mooring system offshore Senegal’, Offshore, 01 July 2022

‘Keppel O&M awarded floating production contracts worth around S$75 million’, Keppel, 01 August 2022

‘Sangomar FPSO relocating to Singapore’, Offshore, 30 November 2022

‘Consortium signs $34 billion MoU for hydrogen project in Mauritania’, Reuters, 8 March 2023

‘Mauritania’s BirAllah gas field: A revolutionary development in West Africa’s gas sector’, Energy Capital & Power, 20 April 2023

‘Greater Tortue Ahmeyim (GTA) LNG project, Mauritania and Senegal’, Offshore Technology, 24 April 2023

‘BP, Kosmos Energy eye BirAllah, Mauritania’, Oil Review Africa, 25 April 2023

‘FPSO for Senegal's Greater Tortue Ahmeyim gas project has left Singapore - energy ministry’, Reuters, 11 May 2023

‘Oil & gas field profile: BirAllah Conventional Gas Field, Mauritania’, Offshore Technology, 01 August 2023

‘Can Singapore unlock Africa’s green hydrogen potential?’, NTU-SBF Centre for African Studies, 15 September 2023

‘BP in talks to exit Senegal's Yakaar-Teranga natural gas field’, Yahoo Finance, 20 October 2023