The African Refining Company plans to build a new unit estimated at between $2 billion and $5 billion, with start-up expected by 2029.

The general manager of the African Refining Company (SAR), Mamadou Abib Diop, announced the upcoming launch of a second refinery project in Senegal. Presented at an energy conference in Cape Town, this program, called "SAR 2.0" will mobilize an investment of between 2 and 5 billion dollars.

The objective is to increase the national crude processing capacity to support the increase in production from Sangomar offshore field.

LThe new site is expected to process 4 million tonnes of crude oil per year, complementing the SAR's existing refinery, which currently handles 1,5 million tonnes. Three foreign partners—China, Turkey, and South Korea—have already expressed interest in financing the project, the location of which has not yet been determined. Discussions are continuing on the capital structure and the possible participation of the Senegalese government.

This project marks a new step in the country's energy sovereignty strategy. Senegal, which already processes some of its oil locally, now wants to secure its supply and reduce its dependence on imported refined products.

With this infrastructure, the government aims to cover the entire domestic demand for petroleum products by 2029 and pave the way for possible regional exports.

The development of "SAR 2.0" illustrates the country's desire to make the oil industry a driver of industrialization and employment. The prospective partners each bring their expertise in the field of refining. Their involvement could accelerate the completion of the project, which is expected to sustainably strengthen Senegal's position on the West African energy map.

Author: The Editorial Staff