Tema LNG Terminal

From Global Energy Monitor
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Tema LNG Terminal is an LNG terminal under construction in Accra, Ghana.

Location

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Project Details

  • Parent: Ghana National Petroleum Corporation (GNPC--50%), Helios (50%)[1]
  • Location: Tema, Accra, Ghana
  • Coordinates: 5.666667, 0 (approximate)
  • Capacity: 2.0 mtpa[2]
  • 'Cost: US$350 million[3]
  • 'Financing: US$31 million loan from the Emerging Africa Infrastructure Fund[4]
  • Status: Construction
  • Type: Import
  • Start Year: 2021[5]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Tema LNG Terminal is an LNG terminal under construction in Accra, Ghana.[6] The Tema LNG Terminal will comprise a floating storage and regasification unit (FSRU) that is to be permanently moored offshore at a jetty built by West African Gas.[7] Construction of the terminal began in March of 2017.[8]

Ghana had been trying to get an LNG import project off the ground for years and the project was beginning to look unlikely. Especially when the two leading FSRU operators, Golar and Hoegh, withdrew due to delays over contracts. But in September of 2018, Ghana chose two Chinese companies to build the infrastructure it needs to import liquefied natural gas, resurrecting the $350 million project that would make the country the first in sub-Saharan Africa to buy LNG. Tema LNG, backed by Africa-focused private equity firm Helios Investment, signed deals with China Harbour Engineering Company to build onshore facilities and Jiangnan Shipyard for a floating storage and regasification unit (FSRU).[9]

As of July 2019, the terminal was expected to be completed by the second half of 2020. However, the project has been mired in criticism for a lack of financial transparency. In June of 2017, the Ghana National Petroleum Corporation signed a gas supply contract with Rosneft, but in July of 2019 they signed a new agreement with Helios/China Harbor Engineering for the same gas, leading experts to ask for an explanation for the dissolution of the original Rosneft agreement.[10]

In January 2021 it was reported that the FSRU, built by Jiangnan Shipbuilding, had arrived at the site.[11] The Spanish company Reganosa also announced that it had been awarded the contract to operate and maintain the FSRU, and that the LNG will be supplied under a long-term contract with Shell.[12]

Operations have been postponed until the first quarter of 2021.[5]

S&P Global reported in early May 2021 that the Tema terminal was set to receive its first LNG cargo at the end of the month. According to company sources, "The project is operationally ready, and is currently awaiting an agreement between Shell and GNPC on the first delivery date."[13]

Opposition

In December 2019, the Africa Centre for Energy Policy (ACEP), an energy think-thank, called on the government to halt construction of the Tema project, citing a potential risk of US$820 million per year in liability to the state-owned Ghana National Petroleum Corporation (GNPC), and to instead utilize domestic gas sources. ACEP said that newly discovered gas resources render external sources irrelevant.[14]

Financing

In November 2020, the Emerging Africa Infrastructure Fund agreed to provide a US$31 million loan to part finance the FSRU. EAIF is part of the Private Infrastructure Development Group. Seven donor countries support the group, as well as the World Bank.[4]

Articles and resources

References

  1. 2020 World LNG Report, page 102, International Gas Union, April 27, 2020
  2. 2019 World Gas Report, International Gas Union, accessed August 2019
  3. Moses Mozart Dzawu and Anna Shiryaevskaya, Ghana to start sub-Sarahan Africa’s first LNG-to-power project, World Oil, Jan. 7, 2021
  4. 4.0 4.1 Ed Reed, EAIF steps in to support Tema LNG, Energy Voice, Nov. 25, 2020
  5. 5.0 5.1 Dan Marks, Ghana LNG regasification unit arrives, start-up expected Q1, Africa Energy, 14 Jan 2021
  6. Tema LNG Terminal, A Barrel Full, accessed April 2017
  7. Tema Liquefied Natural Gas (LNG) Terminal, Ghana, Hydrocarbons-Technology.com, accessed May 2017
  8. Construction work on Tema LNG Terminal in Ghana to commence, Construction Review Online, 17 March 2017
  9. Ghana resurrects LNG import terminal with Chinese deals Reuters, September 11, 2018
  10. Benjamin Owusu, Alex Mould cautions government on LNG re-gas contract Ghana Web, 14 July, 2019
  11. Tema LNG receives FRU for its 1.7 Mt/year LNG import project (Ghana), Enerdata, Jan. 11, 2021
  12. REGANOSA TO OPERATE AND MANTAIN SUB-SAHARAN AFRICA’S FIRST OFFSHORE LNG RECEIVING TERMINAL IN GHANA, Reganosa press release, January 2021
  13. Stuart Elliott, Ghana set to receive first LNG cargo at end of May, S&P Global, May 5, 2021
  14. Suspend Tema LNG project - ACEP Ghana Web, December 9, 2019

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