Construction of what is expected to be Sub-Saharan Africa’s first regasification terminal has received a shot in the arm after a major deal was signed to support the project.
Helios Investment Partners reached a deal early this month with China Harbour Engineering Company to construct a $350m liquefied natural gas (LNG) terminal in Ghana’s Tema port.
The agreement was signed by officials of Tema LNG Terminal Company, which is controlled by Helios and China Harbour Engineering Company, during the official visit of Ghana President Nana Akufo-Addo to China.
Under the deal, 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.
Tema LNG Terminal Company Limited is controlled by Helios Investments, the world’s largest Africa-focused private equity fund.
Speaking during the signing of the agreement, president Akufo-Addo said that Tema LNG Terminal Project is part of a wider strategy by the government to encourage private sector participation in the growth of the economy.
“Our overall goal is to provide Ghana with constant, reliable and affordable power supply,” he said.
He added reliable supply of power will encourage industrialization which in turn will spur economic growth.
“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 emphasized.
To be completed in 18 months, the LNG terminal,is expected to strengthen Ghana’s position as a regional trade and energy hub and is estimated to provide about two million tonnes of liquefied natural gas every year and generate some 1,600 jobs.
It is expected that Tema LNG terminal will be transferred to the Ghana Government after 12 years.