CHEC Pens Construction Deal for Tema LNG Terminal

Tema LNG Terminal Company, an entity controlled by Helios Investment Partners, has signed an agreement with China Harbour Engineering Company (CHEC) for the construction of a liquefied natural gas (LNG) terminal in Tema.

China Harbour Engineering Company  is constructing the marine facilities, whilst Jiangnan Shipyard of China will be constructing the floating regasification facility.

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 is expected to be completed in 18 months, will be Sub-Saharan Africa’s first regasification terminal.

The project is estimated to provide about two million tonnes of LNG every year, supplying about 30% of Ghana’s total electricity generating capacity.

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 cost of the project is estimated in excess of some USD 350 million.

The Terminal will be transferred to government (GNPC and GPHA) after 12 years.