Quantum Power and Ghana National Petroleum Corporation (GNPC) have signed an agreement for the construction and operation of the Liquefied Natural Gas storage facility in Ghana. The facility will be constructed at Tema.
The Tema LNG project will receive, store, regasify and deliver, about 3.40 million tons of LNG per annum. The delivery will be equivalent to 500 million standard cubic feet of gas per day. The project will as well utilize the state-of-the-art dedicated to floating storage and regasification unit (FSRU) moored off-shore Tema.
An onshore pipeline and associated sub-sea will deliver the natural gas to GNPC and its customers onshore. The project total cost is US$550m. The cost will be implemented on a build-own-operate-transfer (BOOT) basis with the assets transferring to GNPC after the Project’s 20-year term.
The project is however expected to commence operation by end of this year. The project’s design is based on built-in scalability, which will help the facility increase its production to meet Ghana’s growing energy demand, providing the country’s power generation industry with a highly reliable and clean fuel supply meeting the projected power and industrial needs for the next 20 years to come.
Tema LNG Project will also provide GNPC with the flexibility to manage volatility in power demand and fluctuations in domestic gas supply, as well as mitigating the effect of unpredictable rainfall on the country’s power balance.
Tema LNG Project has been under development for 3 years now, and it involves some of the world’s most experienced engineering teams collaborating on an innovative design to address the specific maritime challenges in the Gulf of Guinea.
Additionally, the terminal will be located 12km off Tema’s shore, to allow cost-efficient refueling and regasification without affecting maritime and port traffic.
According to GNPC CEO, Alexander Mould, the corporation is leading Ghana’s efforts to develop the gas-to-power value chain supporting the Government’s vision of energy security for accelerated economic growth.
Matty Vengerik, CEO of Quantum Power said that, the project will reduce the risk of commercial and industrial activities and increases Ghana’s attractiveness in terms of investment destination.
He added that, the project will spur directly and indirectly technology and know-how transfer, and maritime and energy employment opportunities, in addition to its highly leverageable indirect contribution to economic activity and employment in the country