Ghana is set to construct the first regasification terminal plant in Sub-Saharan Africa at a whooping cost of US $350m following a signed agreement between officials of Tema LNG Terminal Company Limited which is controlled by Helios and China Harbor Engineering Company to build the plant.
President Nana Addo Dankwa Akufo-Addo during the signing ceremony said the project was was a marker of the efforts his government has put in place over the last 19 months to encourage private sector participation in the growth of the economy.
“If we are going to succeed in rapidly pushing the industrial development of our country, the supply of gas, which will mean even more affordable rates of power, is now a matter of very great importance for us,” he said.
12-year gas supply agreement
The construction of the LNG terminal comes after the state-owned exploration firm Ghana National Petroleum (GNPC) signed a 12-year gas supply agreement with Russia’s Rosneft. It is expected to create over 1600 job opportunities.
Upon completion estimated to be after 18 months, the project will deliver around two million tonnes of LNG annually, contributing 30% of Ghana’s total electricity generating capacity. This according to the President will ensure constant, reliable and affordable power supply in the country.
Development and operation of the facility
Additionally, a concession agreement has been signed between the Ghana Ports and Harbor Authority (GPHA) and the Tema LNG Terminal Company to allow the development and operation of the facility within the Tema Port.
China Harbour Engineering Company, which is currently expanding the Tema port, will construct the marine facilities for the terminal, while Jiangnan Shipyard of China will build the floating regasification facility. The terminal is expected to be transferred to the Ghana Government after 12years.