Deal inked for Ghana LNG terminal build

Tema LNG Terminal Company Ltd, an entity controlled by Helios Investment Partners, signed the deal with China Harbour Engineering Company, which will see the new terminal built in 18 months.

Witnessing the signing of the agreement in Beijing, China, Ghana President Akufo-Addo said: “If we are going to succeed in pushing the industrial development of our country rapidly, the supply of gas, which will mean even more affordable rates of power, to our country is now a matter of very great importance for us.”

Supply agreement

The LNG Terminal is being constructed on the back of a 12-year gas supply agreement that was executed between the Ghana National Petroleum Corporation (GNPC) and Rosneft, a global LNG supplier.

Rosneft subsequently engaged Tema LNG Terminal Company for the provision of the regasification services.

China Harbour Engineering Company, which is already involved in the current Tema port expansion project, is constructing the marine facilities, whilst Jiangnan Shipyard of China will construct the floating regasification facility.

In addition, a concession agreement signed between the Ghana Ports and Harbours Authority (GPHA) and Tema LNG Terminal Company Ltd, will deliver an annual revenue in excess of $6 million to GPHA throughout the total concession period.

When completed, the terminal is estimated to provide about two million tonnes of LNG every year.

This will mean that the facility will supply about 30% of Ghana’s total electricity generating capacity, helping displace crude oil and crude derivatives as fuel sources for the generation of power.