Tema LNG Terminal Company Ltd., an entity controlled by Helios Investment Partners, signed an agreement with China Harbour Engineering Company, for the construction of a Liquefied Natural Gas (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. 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.
The project, which will generate some 1,600 jobs, is estimated to provide about two million tonnes of liquefied natural gas 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 $6 million 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, and Helios Investment Partners. As such, there was no requirement for capital from Government.
The cost of the project is estimated in excess of some $350 million, of which $200m would be spent directly in Ghana over the next 18 months.
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 be constructing the floating regasification facility.
The Terminal will be transferred to government (GNPC and GPHA) after 12 years.
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