MCB bankrolls US $60M on Karpowership operations in Senegal

MCB bankrolls US $60M on Karpowership operations in Senegal

The Mauritius Commercial Bank (MCB) is facilitating Senegal’s transition to LNG for its electricity production through its US $60M participation in Karpowership operations.

The project finance facility is enabling Turkey’s floating power plant company Karpowership to operate its 235 MW Powership dubbed the Karadeniz Powership Ayşegül Sultan alongside the shores of Dakar.

In August 2019, Karpowership signed an LNG-to-power contract with Senegal to deploy a Powership for a period of five and a half years. Karadeniz Powership Ayşegül Sultan started operation in October 2019. Karpowership is supplying 15% of Senegal’s electricity.

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Senegal’s ambition

Senegal’s ambition is to increase its electrification rate to 100% by 2025 and shift primarily to natural gas for its power production by 2035. This fuel switch-over will generate a material reduction in the country’s fuel bill with a positive spill-over effect on electricity costs. It will also reduce the national grid’s emissions factor.

Being the first power generation plant fueled by gas, the Powership will lay the foundation stone of Senegal’s plan to diversify its energy mix. The transition of the Powership is being facilitated by a Floating Storage and Regasification Unit (FSRU). Following successful sea trials, the KARMOL LNGT Powership Africa FSRU has departed Singapore and is expected in Senegal in the coming weeks. KARMOL is a joint venture between Karpowership and Mitsui OSK Lines.

“Financing Karpowership in Senegal is a first step in the right direction and we are looking forward to increase our participation in projects that foster energy production whilst promoting both climatic and environment friendliness in an endeavour to increase living standards,” Zaahir Sulliman, the Head of Specialised Finance for MCB.