Tema LNG Terminal Company has signed an agreement with the China Harbour Engineering Company (CHEC) for the construction of a $350 million liquefied natural gas (LNG) terminal in Tema.
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, Business Ghana reported.
The project is expected to be completed in 18 months and will be sub-Saharan Africa’s first regasification terminal, according to media.
Speaking at the signing ceremony, President Akufo-Addo said the Tema LNG Terminal project was a testament to the efforts put in place by the government 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,” Akufo-Addo said.
According to Business Ghana, a concession agreement has been signed between the Ghana Ports and Harbours Authority (GPHA) and the Tema LNG Terminal Company to allow for the siting and operation of the facility within the Tema Port.
The concession agreement is expected to deliver an annual revenue in excess of $6 million to the GPHA.
Media reports have noted that the project will generate an estimated 1,600 jobs.
In addition, it will provide around two million tonnes of LNG per annum, supplying about 30% of Ghana’s total electricity generating capacity.