Energy in Benin is a growing industry

Industry

Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...

 with tremendous potential.

Oil

Production from the Sémé off shore oil field began in October 1982 by Saga Petroleum

Saga Petroleum

Saga Petroleum was a Norwegian upstream petroleum company established in 1972 that was acquired by Norsk Hydro in 1999. Since October 2007 it is a part of Statoil. The company was the only fully private oil company in Norway. It had partial ownership in 60 oil field licenses and was operator of 18...

, a Norwegian

Norway

Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

 company working under a service contract. The field yielded 1.35 Moilbbl of oil in 1991. In 1990, Benin

Benin

Benin , officially the Republic of Benin, is a country in West Africa. It borders Togo to the west, Nigeria to the east and Burkina Faso and Niger to the north. Its small southern coastline on the Bight of Benin is where a majority of the population is located...

 exported an estimated 1.27 Moilbbl of crude oil. In 1986, the contract was transferred to Pan Ocean Oil (Panoco), a Swiss

Switzerland

Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....

-based US company, but loans to Benin from international development agencies were frozen because the company could not furnish satisfactory financial and capability statements; it withdrew, forcing Benin to take over oil production. Reserves

Oil reserves

The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is...

, which were estimated at 44 Moilbbl, were considered sufficient to meet domestic needs, but there is currently no refinery

Oil refinery

An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...

 in Benin; consequently, refined petroleum

Petroleum

Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...

 products have to be re-imported. In 2002, imports of refined petroleum products amounted to 12600 oilbbl/d. The company responsible for petroleum products import is Société Nationale de Commercialisation des Produits Pétroliers

Société Nationale de Commercialisation des Produits Pétroliers

Société Nationale de Commercialisation des Produits Pétroliers is a supplier of petroleum and gas products in Benin. The company was established in 4 December 1974 as a state owned enterprise after nationalization and merger of Beninese daughter companies of BP, Total S.A., Agip, Texaco, Shell,...

 (SONACOP).

Natural gas

Although Benin has moderate natural gas reserves, there is no natural gas production and all natural gas is imported. The company responsible for the gas import is Société Beninoise de Gaz

Société Beninoise de Gaz

Société Beninoise de Gaz is a natural gas company of Benin....

. Natural gas is supplied to Benin by the West African Gas Pipeline

West African Gas Pipeline

The West African Gas Pipeline is a natural gas pipeline to supply gas from Nigeria's Escravos region of Niger Delta area to Benin, Togo and Ghana...

.

Electricity

Electrical generating

Electricity generation

Electricity generation is the process of generating electric energy from other forms of energy.The fundamental principles of electricity generation were discovered during the 1820s and early 1830s by the British scientist Michael Faraday...

 capacity in 2002, totaled 122 MW. Total domestic power output in that same year was 55 GWh, of which hydropower

Hydroelectricity

Hydroelectricity is the term referring to electricity generated by hydropower; the production of electrical power through the use of the gravitational force of falling or flowing water. It is the most widely used form of renewable energy...

 accounted for 2 GWh and fossil fuels for the rest. Electricity consumption in 2002 was 488 GWh. An agreement was signed with Togo

Togo

Togo, officially the Togolese Republic , is a country in West Africa bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. It extends south to the Gulf of Guinea, on which the capital Lomé is located. Togo covers an area of approximately with a population of approximately...

 and Ghana

Ghana

Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...

 in 1967 under which Benin receives low-cost electric power from the Akosombo Dam

Akosombo Dam

The Akosombo Dam , is a hydroelectric dam on the Volta River in southeastern Ghana in the Akosombo gorge and part of the Volta River Authority. The construction of the dam flooded part of the Volta River Basin, and the subsequent creation of Lake Volta...

 on the Volta River

Volta River

The Volta is a river in western Africa that drains into the Gulf of Guinea. It has three main tributaries—the Black Volta, White Volta and Red Volta...

 in Ghana. Total electricity imports for 2002 were estimated at 437 GWh. Togo and Benin are constructing a dam on the Mono River

Mono River

The Mono River is the major river of eastern Togo.Approximately long, and draining a basin of about , it rises between the town of Sokodé and the border with Benin, and flows south. Along the southern portion of the river towards its mouth, it forms the international boundary between Togo and Benin...

, along the Togo border, that will feed a power station

Power station

A power station is an industrial facility for the generation of electric energy....

 to supply the southern regions of both countries. Benin also imports electricity from Nigeria through the CEB-NEPA Power Interconnection

CEB-NEPA Power Interconnection

CEB–NEPA Power Interconnection is a long 330 kV powerline between Sakété and Ikeja . It connects Nigeria's power grid with Benin's grid .-History:...

, commissioned in 2007.