The Tema LNG Terminal Company Ltd has closed a deal worth $350m with China Harbour Engineering Company, for the construction of a Liquefied Natural Gas (LNG) Terminal to be located in Tema.
Tema LNG Terminal Company Ltd, an organisation managed by Helios Investment Partners, the world’s largest Africa-focused private equity fund, will deliver an annual revenue in excess of $6 million to Ghana Ports and Harbours Authority throughout the total concession period.
The LNG Terminal started with a 12-year gas supply agreement that was achieved 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 will be Sub-Saharan Africa’s first regasification terminal, strengthening Ghana’s position as a regional trade and energy hub.
The project, which will be completed in 18 months, will generate some 1,600 jobs, and it is evaluated 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.
According to President Akufo-Addo, during his official visit to China, where he witnessed the signing of the agreement, in Beijing, indicated that the Tema LNG Terminal Project is a testament to the efforts his government has put in place over the last 19 months to encourage private sector participation in the growth of the economy.
The President said, the construction of the terminal is in line with the commitment of his government to providing Ghana with constant, reliable and affordable power supply.
“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,” He explained.
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 Investment Partners, the world’s largest Africa-focused private equity fund. As such, there was no requirement for capital from Government.
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.
The contract was signed by Ogbemi Ofuya, the Director, Tema LNG Terminal Company Ltd, and Lin Yichong, Chairman, China Harbour Engineering Company.