Gas find will be a boon for new Mauritanian government

Subject

Outlook for Mauritanian gas development

Significance

BP and Kosmos Energy in late October found new offshore gas reserves with the Orca-1 well. Kosmos says the resource is sufficient to underpin a third gas hub in the region, in addition to the Grand Tortue Ahmeyim (GTA) development on the border with Senegal, and Yakaar, in Senegalese waters. The latest discovery underlines the potential for Mauritania and Senegal to become a global-scale LNG hub, helping to meet growing gas demand as countries worldwide switch to cleaner fuels. The Orca discovery is located 125 kilometres offshore and is likely to be developed with a floating liquefaction vessel similar to the one planned for the GTA development.

Impacts

• Domestic gas supply will prove a major challenge in terms of infrastructure and human capacity.
• The government will come under pressure from its opponents if the benefits of gas development are slow to materialise.
• Cooperation over LNG projects is likely to strengthen Mauritania-Senegal relations, which have been strained in the past.
• Energy poverty has been a key brake on development, and if the gas can be harnessed for domestic use, the mining sector stands to benefit.