Senegal is pushing ahead with plans to expand its energy infrastructure, announcing a $5 billion project to build a second oil refinery aimed at closing the country’s domestic fuel gap and reducing dependence on imports.
- Senegal plans to construct a second oil refinery to address its domestic fuel gap and reduce dependency on imports.
- The SAR 2.0 project aims to add 4 million tons of annual refining capacity by 2029, backed by financing from international partners.
- This development would help Senegal achieve self-sufficiency in petroleum products and position it as a regional exporter.
- Senegal’s move aligns with West Africa’s broader efforts to secure energy independence and advance regional refining capacity.
Senegal is moving to expand its role in West Africa’s energy landscape with plans to build a second oil refinery, a $5 billion project designed to meet rising domestic demand and reduce dependence on imported fuels
The proposed SAR 2.0 plant, backed by financing interest from China, Turkey, and South Korea, would add 4 million tons of annual refining capacity by 2029.
If completed, the project would not only make Senegal self-sufficient in petroleum products but also position it as a potential exporter within a region increasingly focused on cutting reliance on foreign fuel supplies.
Mamadou Abib Diop, CEO of the national refining company Société Africaine de Raffinage (SAR), told Reuters on Thursday that construction of the new facility could begin next year, with investment needs ranging between $2 billion and $5 billion.
Financing offers, he added, have already come from potential partners in China, Turkey and South Korea.
“This gap we will cover with a project named SAR 2.0, which means that we will add a second refinery site in order to add 4 million tons of processing capacity per year,” said Diop.
Powered by Sangomar field output
The planned refinery will be supplied primarily by crude from Senegal’s Sangomar oil and gas field, operated by Australia’s Woodside Energy with state-owned Petrosen holding a minority stake.
The field began production in 2024 with an annual output of 34.5 million barrels, equivalent to about 4.6 million tons.
Currently, SAR processes around 1.5 million tons per year, or about 30,000 barrels per day, but this leaves a shortfall that must be filled through imports.
By targeting 2029 for start-up, the second refinery aims to make Senegal self-sufficient in petroleum products while also creating capacity for exports to the wider region.
“There is no final decision yet on where the new refinery will be located or whether the government will take an equity share,” Diop noted.
Senegal’s fuel dependence and the push for self-sufficiency
For decades, Senegal has relied heavily on imported refined petroleum products to meet domestic demand.
The Société Africaine de Raffinage (SAR), West Africa’s oldest refinery, processes about 1.5 million tons of crude annually, roughly 30,000 barrels per day, leaving a structural gap filled by costly imports of diesel, petrol, kerosene, and butane.
That began to shift in February 2025, when SAR processed 650,000 barrels of crude, about 90,000 tons, from the Sangomar offshore field, marking the first local production of refined fuels.
The milestone underscored both progress and the magnitude of the shortfall, as demand still far outstrips supply.
To address this, Senegal is advancing the SAR 2.0 project, a second refinery expected to add 4 million tons of capacity per year by 2029.
“This gap we will cover,” said SAR CEO Mamadou Abib Diop, framing the project as part of West Africa’s wider push, led by Nigeria’s Dangote Refinery, to reduce dependence on foreign fuel.
A new chapter for West African refining
The project comes as West Africa undergoes a refining shake-up, led by Nigeria’s Dangote Refinery, which recently began operations and is touted as a game-changer for the region’s fuel supply.
With a capacity of 650,000 barrels per day, the Dangote plant is expected to slash imports and transform Nigeria from a major fuel importer into a potential exporter.
Senegal’s “SAR 2.0” fits into this wider push. If successful, the project would add momentum to West Africa’s ambition to secure energy independence, stabilize domestic markets, and eventually compete as a regional supplier.
As Diop put it, “A lot of investors are coming and giving their interest about financing these projects.”
