SAR vs Touba Oil : un bras de fer « explosif » autour du gaz butane
The Senegalese energy sector is shaken by a conflict described by L'Observateur as "a case with colossal financial stakes that is quietly stirring up the sector's inner workings." This power struggle pits the African Refining Company (SAR) against the private company Touba Oil over a strategic project for a maritime terminal and a "sea-line gas pipeline" in Mbao.
From a technical standpoint, the same source indicates that the planned infrastructure must be able to accommodate butane tankers of "10,000 to 20,000 tons," compared to a current capacity "limited to 4,000 tons." Entirely financed by domestic private capital, the project aims to modernize the supply chain in order to reduce procurement costs and, ultimately, lower the price of butane gas for consumers.
But this industrial ambition is hampered by a legal dispute. SAR obtained a suspension of work by citing "unlawful occupation of its land." In response, Touba Oil filed a complaint with the Free Zone gendarmerie, denouncing, in particular, "obstruction of a right of way" as well as acts of "assault, threats, and blackmail."
Bitterness is palpable among investors who, in the columns of the Groupe Futurs Médias daily newspaper, question the signal sent to the national private sector: "SAR's action does not encourage private investors. How can we block financing provided by a national private company when the project will have a direct impact on the population?"
After several failed mediation attempts, the case is now before the courts. The two parties are scheduled to appear before the Dakar High Court on May 12 for the examination of their "cross-complaints." The court will have to decide between the protection of state-owned land, defended by SAR, and the continuation of an investment deemed "strategic for the country's butane gas supply" by Touba Oil, explains L'Observateur.
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