Senegal advances $7.5 billion Yakaar-Teranga gas development

Katarina Höije May 13, 2026

(Bloomberg) – Senegal’s state-owned oil company said the Yakaar-Teranga gas discovery will cost $7.5 billion to develop, but will help the country slash energy subsidies once on stream.

The project could sharply reduce Senegal’s $1 billion-a-year subsidy bill and ultimately help to replace imported fuels, Mouhamadou Diop, chief executive officer of Petrosen’s trading arm, said at an event in Dakar.

The offshore field was found by Kosmos Energy Ltd. a decade ago. The discovery, together with the Grand Tortue Ahmeyim gas deposit, piqued interest in the West African country as a promising new producer. Senegal is keen to use the fuel to generate electricity and to build petrochemical and fertilizer industries.

BP Plc was an early partner in the Yakaar-Teranga development, but exited the project in 2023. Kosmos’ contract expires in July, when Senegal will likely become the sole shareholder, echoing similar moves by other African countries to assume tighter control of their natural resources.

The nation’s plans to develop its own gas follows success in building a domestic oil industry, with the offshore Sangomar field starting output in 2024.

“We produce oil, but we remain a net importer of refined petroleum products,” Diop said. “The goal is to use revenues that you get from the oil and gas to actually invest it in exploration, to be an operator and develop the project ourselves.”

Taking Yakaar-Teranga as two phases, the first would require about $2.5 billion to produce about 300 million cubic feet of gas a day for the domestic market, according to Diop. Around $5 billion would be needed for a later downstream development that would encompass fertilizer, petrochemical, steel and cement production, he said.

Senegal can use a combination of regional bond markets, development finance institutions and diaspora-linked capital to pay for the project, the CEO said. “Properly structured offtake contracts, often 15 to 20 years, can support project debt of investment-grade quality.”