US-Africa Engages with FONSIS on Senegal Gas
Last Friday, the U.S. Trade and Development Agency (USTDA) and Senegal’s sovereign wealth fund (Fonds Souverain d’Investissements Stratégiques, FONSIS) signed an agreement granting FONSIS a $1.2m grant for the Senegal Gas Grid Project.
The Senegal Gas Grid will be the backbone of gas monetization in Senegal once domestic supplies become available in a few years. The pipeline network will ensure stable gas feedstock to several existing and future power plants, and delivery infrastructure for industries.
The project notably follows the adoption of the Senegal Gas Code earlier this year, or Law No. 2020-06, which brings key innovations such as access right for third parties to gas infrastructure, establishment of a gas regulator to regulate and oversee the participation of the private local and international sector in gas operations, the protection of consumers and operators’ rights and interests, and the respect of international quality norms in terms of HSE.
The grant from the USTDA is yet another example of the benefits of the US-African energy cooperation, especially in the area of gas and power. It follows similar US backing to gas valorisation projects across the continent, such as the Abuja gas-to-power plant which also received a similar grant a few weeks ago.