NouakchottAbout two months ago, the young Mauritanian man, Al-Tayeb Abdo (27 years old), decided to invest in a traditional resort overlooking the road locally called “Al Masharie” in the western part of the capital, Nouakchott, where it provides its patrons with places to relax and provides them with traditional meals.
But the nature of the new college boy’s work – which requires consuming large amounts of gas and electricity at a monthly cost of more than $300 – forces him to economize on energy consumption due to its high price, and to avoid exorbitant bills that may lead to loss.
Al-Tayeb told Al-Jazeera Net, “The prices of electricity, gas, and gasoline constitute a heavy financial burden on my emerging project and sometimes force me to increase prices, and hinder my ambition to expand some activities.”
With the announcement of the start of natural gas extraction in Mauritania for the first time, Al-Tayeb hopes that his country’s gas revenues will contribute to reducing the cost of energy sources that burden the owners of small and medium enterprises.
On January 1, the British company BP officially announced the start of extracting liquefied natural gas from the large “Turtle Ahmeem” project, on the maritime border with Senegal, after 10 years of waiting.
The start of gas production represents a turning point for Mauritania. After many decades of relying on the export of raw minerals and fish, Mauritania’s population of about 5 million people dreams that their government will exploit gas revenues to improve their living conditions and reduce the cost of energy.
Keep an eye on gas electricity
Electricity prices in Mauritania are classified as the most expensive in the region, and average consuming families pay between 40 and 50 dollars per month for electricity service. This high cost – as the government admits – has prompted it to plan the implementation of important projects to produce energy using gas to exploit the product from the “Turtle Ahmeem” field for local consumption. Which is estimated at 35 million metric cubic tons per day.
According to Ahmed Faal Mohamedan, advisor to the Minister of Energy in charge of cooperation and communication, “Mauritania is now working to accelerate the pace of procedures” related to the establishment of gas-fired electricity generation plants, with a total capacity exceeding 600 megawatts, with the first stations to enter into operation by the year 2027.
The advisor confirmed in an interview with Al Jazeera Net that the local gas electricity generation project will reduce the cost of production for mineral companies and the National Electricity Company, which will have a significant impact on the national economy by reducing the cost of electricity in general.
He points out that the increasing shift towards clean energy is one of the factors that will contribute in the future to reducing the price of electricity, as about 48% of the country’s electrical energy is now clean, and its source is sun, wind, and hydroelectric energy, and it is heading to be among the list of leading countries in the field of energy transformation and the production of green hydrogen as a Alternative energy.
According to Ahmed Vall, Mauritania relies on a strategic energy vision for the integration of the gas, electricity and mineral sectors, which consists of exploiting gas resources to produce abundant, reliable electricity at reduced prices and directing it towards mineral poles to support the manufacturing industries, which will create an economic and social shift in the country.
Complain about the high cost
Fuel represents 30% of Mauritanian imports, and its high cost poses a major challenge to families and small business owners, especially since its high cost affects foodstuffs and is directly linked to the lives of ordinary citizens.
According to urban transport investor Sidi Al-Mukhtar, the high cost of fuel has caused a mass exodus from the profession, stressing that profit is no longer possible, but that most people here struggle only to survive or avoid loss.
Two years ago, fuel prices in Mauritania rose by 30% at once, due to “the repercussions of the Russian-Ukrainian war.” Since then, complaints about high prices have been escalating, as the price of a liter of diesel reached 490.96 ounces ($1,363) and the price of a liter of gasoline reached 560.64 ounces ($1,557). ).
Regarding the pricing applied in the field of automobile fuels and industrial vehicles, Counselor Ahmed Faal confirms that “the state still supports prices to protect the consumer against the astonishing rise in oil prices worldwide and market fluctuations.”
He adds that the government continues to subsidize the price of butane gas, which is necessary for families’ cooking needs, and this contributes environmentally to protecting the forest reserve, which suffers from time to time from cutting down trees and using firewood for cooking purposes.
It is expected that the new gas revenues will be reflected in fuel prices, even though the state currently subsidizes fuel prices by about 138 billion old ouguiya, and pays 52 ouguiya ($0.13) for each liter of fuel, and also pays 1,160 ouguiya ($3) for a large bottle of domestic gas.
Expected gas effects
Regarding the impact of the “Ahmim Al-Kabir” field project on fuel prices, economic analyst Umm Ould Anfa believes that the cash revenues that the project will provide will leave a margin of maneuver for the Mauritanian treasury in order to expand fuel support, whether liquid or gaseous, in the coming stages.
He adds that Mauritania in the future will be able to provide electricity from a local source, which will have a positive impact on the citizen and investors in general, because energy prices will decline in the medium and long term.
As for the economic analyst, Sidi El-Khair Amr, he does not expect a direct impact on fuel prices in the near term for several reasons, the most prominent of which are the following:
- LNG from the Ahmeem field is directed towards industrial uses It differs from household butane gas, and does not replace petroleum products used in the local market, such as gasoline and diesel, except with regard to the production of electricity.
- Lack of local infrastructureMauritania does not currently have a local distribution network for natural gas to meet the needs of the local market, which makes the impact of gas production on fuel prices locally limited.
- Directing gas for exportMost of the gas produced will be exported to international markets under long-term contracts with foreign companies investing in the project.
But Sidi Al-Khair does not hide his hope that gas will have a positive impact on fuel prices in the long term, stressing that gas revenues can be used to subsidize fuel or develop alternative energy sources, which will reduce energy costs for citizens and have a direct impact on their livelihood.
