Mauritania’s state power utility company, Société Mauritanienne de l’Électricité (SOMELEC) and its national mining company, Société Nationale Industrielle et Minière (SNIM) have signed Heads of Terms for two Power Purchase Agreements (PPAs) with Saudi Arabia’s TAQA and Egypt’s GoGas Holding.
The agreement is part of Mauritania’s integrated gas-to-power initiative and represents the next phase of the Banda gas-to-power project, with first gas and incremental power generation expected in 2028.
Speaking at the signing ceremony during the inaugural session of the Mauritanian-Egyptian Economic Forum, Khaled Kacem, CEO of GoGas Upstream said, “Signing these PPAs marks a significant leap toward enhancing Mauritania’s energy security and economic growth”.
“As the first integrated gas-to-power project in the country, Banda exemplifies our commitment to driving Africa’s energy transition.”
Under the agreement, TAQA Arabia, through its subsidiary Rosetta, will be responsible for the downstream distribution of gas in the form of mobile LNG to mining and industrial customers, further enhancing the project’s scope and value proposition.
The consortium will replace heavy oil with natural gas from the Banda gas field to generate more than 150 MW of electricity for Mauritania.
“The Heads of Terms for these PPAs build upon the previously signed Gas Sales Agreement (GSA) Heads of Terms from November 2024 between GoGas and SOMELEC.
“Under these agreements, Banda field gas will replace Heavy Fuel Oil (HFO) at the existing dual-fuel power plant, significantly securing the consumption of at least 60 mmscfd of the Banda field’s natural gas production”, GoGas said in a statement.
The agreements secure the offtake of 60 million standard cubic feet per day (mmscfd) of natural gas from the Banda field, supporting the development of a planned 300 MW combined cycle plant.
“The recently signed PPAs cover the potential sale of electricity generated from more than 150 MW capacity on an annual long-term basis, originating from the Project’s planned 300 MW Independent Power Plant (IPP)”, the statement reads.
The project seeks to diversify Mauritania’s energy mix by shifting from HFO to lower-carbon gas. It will also strengthen the country’s energy security through the development of its first fully integrated gas-to-power solution.
The agreement forms part of Mauritania’s plan to allow all new power generation infrastructure to be run by the private sector with supervisory oversight from the state.
