Senegal Advances Plans to Build New Refinery

Senegal is advancing plans to expand its refining capacity as it seeks to meet domestic fuel demand and become a larger supplier to West African markets. Toward this goal, state-owned Société Africaine de Raffinage (SAR) has signed a memorandum of understanding with Turkey-based Yamata to develop a new refinery. Under the deal, Yamata would manage construction and arrange financing without a Senegalese sovereign guarantee, making funding and debt sustainability key tests before construction begins. The proposed refinery would process four million metric tons of crude annually and cost an estimated $2 billion to $3 billion. Separately, modernizing SAR’s existing Mbao refinery is estimated to cost an additional $300 million to $500 million. Senegal became an oil-producing nation in 2024 when its offshore Sangomar field came online. However, the country still relies on fuel imports to meet part of its domestic demand.