China Harbour Engineering Company (CHEC) has signed a construction agreement with Tema LNG Terminal Company Ltd., for the construction of an LNG Terminal to be sited in Tema.
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 trader and the world’s largest listed oil producer. Rosneft subsequently engaged Tema LNG Terminal Company for the provision of the regasification services.
The LNG Terminal, which will be completed in 18 months, will be Sub-Saharan Africa’s first regasification terminal, strengthening Ghana’s position as a regional trade and energy hub.
The project is estimated to provide about two million tonnes of LNG every year. This would mean that the facility would supply about 30% of Ghana’s total electricity generating capacity, displacing crude oil and crude derivatives as fuel sources for the generation of power.
In addition, a concession agreement signed between the Ghana Ports and Harbours Authority (GPHA) and Tema LNG Terminal Company Ltd, to allow for the siting and operation of the facility within the Tema port, will deliver an annual revenue in excess of $6m to GPHA throughout the total concession period.
The Tema LNG Terminal Project is a private sector funded and driven project, led by established international sponsors, such as Rosneft, the world’s largest listed producer of crude oil, and Helios Investments, the world’s largest Africa-focused private equity fund. As such, there was no requirement for capital from Government.
The cost of the project is estimated in excess of some $350m, of which $200m would be spent directly in Ghana over the next 18 months.
CHEC, which is already involved in the current Tema port expansion project, is constructing the marine facilities, whilst Jiangnan Shipyard of China will be constructing the floating regasification facility.
The Terminal will be transferred to government (GNPC and GPHA) after 12 years.
For more information visit: www.moi.gov.gh
10th September 2018