Senegal plans second refinery with 5.5 mn tonnes annual capacity

Senegal aims to double its oil refining capacity with a project estimated between $2bn and $5bn, as domestic demand exceeds current output.

Share:

Gain full professional access to energynews.pro from 4.90€/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90€/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 €/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99€/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 €/year from the second year.

Senegal is planning the construction of a second oil refinery to increase its crude processing capacity, currently limited to a single facility. Société africaine de raffinage (SAR) confirmed that the project, still in its preparatory phase, is targeted for commissioning by 2029. The announcement comes amid rising domestic demand for petroleum products and the recent launch of the country’s offshore oil production.

A response to existing SAR capacity limits

Located in Dakar, the country’s only refinery has a capacity of 30,000 barrels per day. This facility, operational for several decades, no longer meets local market needs. SAR Director General Mamadou Abib Diop stated that the new plant would raise total refining capacity to 5.5 million tonnes per year, with 4 million from the new unit.

The project would require an investment estimated between USD2bn and USD5bn. No official timeline has been set, but construction could begin around 2026. SAR plans to structure the initiative as a public-private partnership, although the project’s final governance model remains under consideration.

Talks underway with Asian partners

Negotiations are ongoing with potential investors from China, Turkey and South Korea to secure the financing needed for implementation. Senegalese authorities aim to process a greater share of the crude extracted from the offshore Sangomar field, whose production recently began.

Operated by Australian company Woodside Energy in partnership with state-owned Petrosen, the Sangomar field delivered its first cargo of crude to SAR in February 2025. This marked the start of national valorisation of the country’s oil output.

Targeted reduction of petroleum imports

According to the National Agency for Statistics and Demography, petroleum products accounted for 22.2% of Senegal’s total imports in 2024. The government seeks to reduce this dependency by expanding onshore processing capacity. This development is part of a broader strategy to integrate the oil sector into the national industrial framework.

Mamadou Abib Diop stated that “developing a second refinery is a decisive step toward Senegal’s energy sovereignty.” No further details have been provided regarding the exact location of the new facility.

Ethiopia has begun construction of its first crude oil refinery in Gode, a $2.5bn project awarded to GCL, aimed at strengthening the country’s energy security amid ongoing reliance on fuel imports.
Opec+ slightly adjusts its quotas for November, continuing its market share recovery strategy amid stagnant global demand and a pressured market.
China has established a clandestine oil-for-projects barter system to circumvent US sanctions and support Iran’s embargoed economy, according to an exclusive Wall Street Journal investigation.
TotalEnergies EP Norge signed two agreements to divest its non-operated interests in three inactive Norwegian fields, pending an investment decision expected in 2025.
The US Supreme Court will hear ExxonMobil’s appeal for compensation from Cuban state-owned firms over nationalised oil assets, reviving enforcement of the Helms-Burton Act.
A major fire has been extinguished at Chevron’s main refinery on the US West Coast. The cause of the incident remains unknown, and an investigation has been launched to determine its origin.
Eight OPEC+ countries are set to increase oil output from November, as Saudi Arabia and Russia debate the scale of the hike amid rising competition for market share.
The potential removal by Moscow of duties on Chinese gasoline revives export prospects and could tighten regional supply, while Singapore and South Korea remain on the sidelines.
Vladimir Putin responded to the interception of a tanker suspected of belonging to the Russian shadow fleet, calling the French operation “piracy” and denying any direct Russian involvement.
After being intercepted by the French navy, the Boracay oil tanker, linked to Russia's shadow fleet, left Saint-Nazaire with its oil cargo, reigniting tensions over Moscow’s circumvention of European sanctions.
Russian seaborne crude shipments surged in September to their highest level since April 2024, despite G7 sanctions and repeated drone strikes on refinery infrastructure.
Russia’s Energy Ministry stated it is not considering blocking diesel exports from producers, despite increasing pressure on domestic fuel supply.
The Russian government has extended the ban on gasoline and diesel exports, including fuels traded on the exchange, to preserve domestic market stability through the end of next year.
OPEC has formally rejected media reports suggesting that eight OPEC+ countries plan a coordinated oil production increase ahead of their scheduled meeting on October 5.
International Petroleum Corporation has completed its annual common share repurchase programme, reducing its share capital by 6.2% and is planning a renewal in December, pending regulatory approval.
Kansai Electric Power plans to shut down two heavy fuel oil units at Gobo Thermal Power Station, totalling 1.2GW of capacity, as part of a production portfolio reorganisation.
Canada’s Questerre partners with Nimofast to develop PX Energy in Brazil, with an initial commitment of up to $50mn and equal, shared governance.
BP commits $5 billion to Tiber-Guadalupe, with a floating platform targeting 80,000 barrels per day and first production in 2030, to increase its offshore volumes in the Gulf of Mexico.
Russia projects a 12.5% contraction in oil and gas revenues in 2025, before a gradual recovery through 2028, according to official economic projections.
Baker Hughes will supply up to 50 subsea trees and associated equipment to Petrobras to support offshore production in Brazil, strengthening its role in the development of pre-salt fields.