China Signs Ghana LNG Terminal Deal
Tema LNG Terminal Company, controlled by London-based Africa-focused private equity firm Helios Investment Partners, signed September 2 an agreement in Beijing with China Harbour Engineering Company, for the construction of an LNG terminal in Tema, according to a statement published on the website of the president of Ghana the same day. If built, it will be supplied with LNG by Rosneft.
The contract was signed by Tema LNG Terminal Company director Ogbemi Ofuya and China Harbour's chairman Lin Yichong; it was witnessed by Ghanaian president Nana Akufo-Addo.
According to the statement, the LNG terminal is being built on the back of a 12-year gas supply agreement executed between state Ghana National Petroleum Corporation (GNPC) and Russian state-run oil group Rosneft. Rosneft later engaged Tema LNG Terminal Company for the provision of regas services; the terminal is due to be completed in 18 months and be sub-Saharan Africa’s first regas terminal.
“The project, which will generate some 1,600 jobs, 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,” the president 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.”
The cost of the project is estimated in excess of some $350mn, of which $200mn would be spent directly in Ghana over the next 18 months. (These figures were later repeated on the Ghanaian government's own website Sept.10). China Harbour, which is already involved in the current Tema port expansion project, is constructing the marine facilities. China's Jiangnan Shipyard was awarded a contract in April 2018 by Helios to construct afloating regasification unit (FRU). The relatively small FRU, with 20,000 m3 storage capacity, will be transferred to the government after 12 years.
The Helios project seems to have overtaken projects by three rival consortia - including regas ships owned by Hoegh, Golar and Skaugen - to develop LNG import facilities in Ghana over the past two years.
The signing followed Akufo-Addo's meeting in China with its president Xi Jinping on Sept.1 during which eight political and trade agreements were signed.
(Photo shows those present at the signing; President Akufo-Addo is 4th from the right, credit: Ghanaian presidency)