Quantum Power has announced that its subsidiary, Quantum Power Ghana Gas, has signed a deal with Golar LNG to build an US$ 500 million LNG import terminal.
According to Reuters, the facility, to be situated offshore the eastern port city of Tema, Ghana, will provide gas directly to the state-run Volta River Authority (VRA) by mid-2016 to boost power generation.
Golar LNG will provide an offshore floating storage and regasification unit (FSRU) that is currently under construction at the Samsung Heavy Industries shipyard in South Korea. Once operational, the FSRU will have the capacity to deliver at least 250 million ft3/d of LNG, or 1.75 million tpa of liquefied natural gas.
In a statement issued to the Ghana News Agency, Don Ackah, CEO of Quantum Power Ghana, said the project could save power producers over a quarter of a billion dollars every year in fuel cost.
It quoted Ackah as saying: “We are pleased to have reached this milestone. For Ghana’s economy to grow, we need more electricity, which our facilities can help fuel at lower cost and with lower emissions.”
Matty Vengerik, Managing Director of Quantum Power, reportedly added: “We are delighted to have Golar joining us in this innovative project and we are very excited to partake in alleviating an important burden on Ghana’s economic growth.”
The project, which will require over US$ 500 million in capital, has been developed over a period of 18 months.
Ackah concluded: “A lot of work has already been done with payments committed to parts of the Tema LNG project. We are now aiming to complete all government approvals and secure gas supply and sales agreements for a final investment decision in the last quarter of this year,” Reuters reports.
Edited from various sources by Katie Woodward
Read the article online at: https://www.lngindustry.com/floating-lng/04082014/ghana-to-get-lng-import-terminal-1139/