Senegal issues RFP to US companies for national gas pipeline backbone project

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Fonds Souverain d’Investissements Stratégiques S.A. (“FONSIS”) invites submission of qualifications and proposal data (collectively referred to as the “Proposal”) from interested U.S. firms that are qualified on the basis of experience and capability to execute a feasibility study to support the development of Senegal’s first major domestic onshore gas pipeline.

Project Background

The Project is a 135-155 kilometer (“km”) length of onshore pipeline that will connect offshore gas fields, initially the Yakaar-Teranga field, to five existing power plants that are being converted to natural gas from heavy fuel oil and four new gas power plants that Senegal expects to construct by the end of 2023. The Pipeline is expected to be between 16 and 24 inches in diameter and have the capacity to transport an estimated 2,500 MM cubic meters of gas will be transported on an annual basis starting in 2023 with 30 percent excess capacity. The Pipeline will be the backbone of Senegal’s domestic gas sector, enabling the development of a midstream and downstream gas sector in Senegal and significantly reducing the cost of power generation.

About the Grantee

FONSIS is Senegal’s sovereign wealth fund created by law in 2012 with the mandate to mobilize investment for strategic projects aligned with the Plan Sénégal Emergent (“PSE”), the Government of Senegal’s medium- and long-term economic and social development plan to accelerate its progress to reach emerging market status by 2035. FONSIS plays an active role in the development of the projects it supports, managing the technical analysis and project preparation, in addition to bringing its projects to financial close. In support of PSE’s goal, FONSIS has developed and closed 22 projects, with a total project cost of over $650 million. FONSIS’s portfolio of projects has generally focused on energy, health, agribusiness, industry and water & sanitation. FONSIS has attracted both private sector and public sector partners and investors, including Development Finance Institutions (“DFIs”) such as the International Finance Corporation and the Islamic Development Bank.

About the Study

The objective of the Study is to provide a feasibility study, including a preliminary front-end engineering design (“FEED”) and related analysis, that would enable the Project to attract financing and reach financial close. The Study shall include a baseline environmental and social impact review to inform the placement of the final pipeline route in the Study. The Study shall finalize the specifications for each segment of the Pipeline and define the technical requirements for the FEED for the Project. The Study shall also identify any right-of-way issues, verify the gas demand, and update the economic and financial analysis. In addition to a development impact assessment and a U.S. source of supply report, the Study shall also include a U.S. supplier webinar to brief U.S. firms on the Project and provide an overview of the gas sector in Senegal.

The U.S. firm selected will be paid in U.S. dollars from a $1,287,585 grant to the Grantee from the U.S. Trade and Development Agency.

 

Source: Petroleum Africa

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