On January 3rd, 2024, the Mauritanian government announced the first phase of natural gas extraction, slated to begin mid-2024. This announcement, made by Minister of Economy and Sustainable Development Abdessalam Ould Mohamed Saleh, signifies the culmination of years of planning and negotiations aimed at unlocking the nation’s significant offshore gas reserves.
The ambition is to create new sectors and employment opportunities to reduce the nation’s dependence on traditional industries like mining and fishing. However, Minister Ould Mohamed Saleh cautioned that the substantial economic benefits for Mauritania will only come into fruition several years after extraction commences, this initial phase will primarily focus on repaying the debts of companies invested in the gas project.
The Greater Tortue Ahmeyim (GTA) natural gas project, located offshore Mauritania and Senegal, is a joint venture is between BP, Kosmos Energy, and Société des Pétroles du Sénégal (Petrosen). The Mauritanian government has a 29% stake in the project. The Senegalese state-owned company Petrosen aims to eventually acquire the majority stake in the Yakaar-Teranga field, which is part of the GTA project.
Situated 120 kilometers from the shore in water depths of 2,850 meters, the GTA project initially aims to export gas to Floating Production Storage and Offloading (FPSO) vessel provided by Golar LNG. Its first phase, currently under development, anticipates producing around 2.3 million tons of Liquefied natural gas (LNG) per year. The second phase holds the potential to further augment production, reaching an estimated output between 2.5 and 3 million tons of LNG annually.
The International Monetary Fund (IMF) predicts that this initial gas production will contribute positively to Mauritania’s GDP growth starting in 2024. Beyond that, the IMF projects a potential tripling of the nation’s economic growth in 2025, directly fueled by gas exports. Minister Ould Mohamed Saleh underlines the importance of maximizing Mauritania’s gas potential within the 2022-2030 timeframe.
The GTA project, along with other regional gas endeavors, is envisioned to play a crucial role in driving long-term and sustainable economic growth for both Mauritania and Senegal.
Photo by BP