Tema LNG Terminal Drives LNG-To-Power in Ghana

Image: TradeWinds

The Tema Liquified Natural Gas (LNG) facility in Ghana continues to gain financial traction, with the Emerging Africa Infrastructure Fund (EAIF) recently approving a $31-million loan with a 10-year term to Access LNG, a provider of specialist floating LNG infrastructure.

Financial close of the project was reached mid-November by project partners. To date, $400 million has been committed to the project, of which $170 million has been utilized so far.  

The Tema LNG facility will be developed by the Tema LNG Terminal Company, a consortium led by Helios Investment Partners, and will comprise a marine LNG importing terminal at the existing Tema Port for the supply of gas to Ghana National Petroleum Corporation (GNPC), in a bid to provide storage for the region and meet Ghana’s growing energy demand. The facility will have a combined storage capacity of approximately 145,000 m³ to 160,000 m³ with nominal gas send-out capacity of 1.7 million tonnes per annum of LNG.

The facility will utilize a Floating Storage Unit (FSU), permanently moored offshore at a new jetty constructed by West African Gas, and a Floating Regasification Unit (FRU), which will supply natural gas through a 16-inch riser, subsea pipeline and eight-kilometer associated onshore pipeline to a VRA tie-in station.

While the subsea pipeline will provide natural gas from the FRU and FSU, the associated onshore pipeline will deliver gas directly to GNPC. The construction of both the FSU and FRU are at advanced stages, and delivery of the vessels is expected in Q4 of 2020.

The loan from the EAIF is directed at the completion of the FRU, which will operate in conjunction with an upgraded 127,500-cubic meter LNG carrier to deliver 250 MMscfd. The vessel is currently under construction at the Jiangnan Shipyard in China.

According to the EAIF, the Tema LNG facility will enable existing thermal power generators to transition from reliance on burning Light Cycle Oil and Heavy Fuel Oil to natural gas, in which the consistent supply of LNG from providers, including Royal Dutch Shell and Rosneft, will ensure a constant supply of power to the region.

Both Shell and Rosneft have already committed LNG volumes from their global portfolios, enabling the country to utilize natural gas to meet rising energy demand and provide a more reliable and cleaner fuel supply.

According to the Power Africa Roadmap 2030, gas is already a central part of Ghana’s energy mix – equating to 40% – in which the construction of the Tema LNG Terminal will contribute to power generation solutions for the country’s growing population of 29 million.

LNG-to-power represents a key actor on the African energy stage. To address rapidly growing interest in African LNG and its role in power generation, industrialization, economic development and the energy transition, Africa Oil & Power (AOP) will host the Africa LNG Forum as part of its flagship AOP 2021 Conference & Exhibition (October 5-7). The Forum will unite top industry leaders for an expert panel targeting current and future movements within the LNG sector, main projects and the broader African gas outlook. To find out more about the Africa LNG Forum and AOP 2021, visit www.africaoilandpower.com.

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