Mauritania has signed an agreement with a Saudi company for the construction, financing, and operation of a $700 million power plant in the south of the country. The plant will run on gas extracted from the Greater Tortue Ahmeyim (GTA) field, which is being developed by BP.

The GTA Field and Its Importance

The GTA field is located on the maritime border between Mauritania and Senegal. Currently, it produces about 2.65 million tons of liquefied natural gas per year using subsea wells connected to a floating production, storage, and offloading unit, as well as a floating LNG plant, both anchored in shallow waters.

According to intergovernmental agreements between Nouakchott and Dakar, part of the gas from the field is designated for domestic use. Both countries have prioritized electricity generation as the main direction for gas commercialization in the initial development phase.

The New Power Plant and Its Specifications

In 2024, a preliminary agreement is expected to be signed for the sale of gas for the domestic market. Mauritania has entered into a 25-year contract with Acwa, a company from Riyadh, to build a 230-megawatt power plant in the port of N’Diago, which is being developed with Chinese support, north of the mouth of the Senegal River and near Saint-Louis, where Senegal is also constructing a gas-fired power plant using GTA gas.

The power purchase agreement was signed on July 1 in Nouakchott, but the start date for operations has not yet been announced. The project aims to meet Mauritania’s growing electricity demand, enhance the stability of the energy system, and support the country’s long-term goals for energy security and the transition to new energy sources.

In the Acwa project, Acwa holds a 60% stake, while the state-owned company Somelec owns 40%. This is Mauritania’s second gas-to-power project. The first project is scheduled to be commissioned at the end of 2028 and will receive 60 million cubic feet of gas per day from the Banda and Tevet offshore fields.

Other Projects and Prospects

The 300 MW project involves Somelec, GoGas (Cairo), Mauritania’s state mining company SNIM, and Taqa Arabia. In 2024, GoGas and Mauritania’s state oil company SMH gained control over the Banda and Tevet fields.

A preliminary agreement with the Senegalese government for the sale of GTA gas is expected to be signed in 2024. In Senegal, a land-based power plant is being built near Saint-Louis, and there are plans to start constructing a gas pipeline network, with pipes expected to arrive from China via a route bypassing the Middle East.

The pipeline will transport gas from the GTA hub for domestic electricity generation. Fulfilling domestic gas obligations is considered part of GTA Phase 1+.

Reducing Operating Costs

In the first phase of the gas liquefaction project, the main goal is to reduce operating costs, which are planned to be cut by more than 50% compared to last year, with the possibility of further reductions in 2027 and subsequent periods.