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Ghana receives offshore LNG terminal in first for sub-Saharan Africa

Fri, 08th Jan 2021 12:25

ACCRA, Jan 8 (Reuters) - Ghana has taken delivery of
sub-Saharan Africa's first offshore receiving terminal for
liquefied natural gas (LNG), allowing it to start delivering LNG
to customers in the first quarter of this year, the terminal's
operator said.

Tema LNG, which is backed by UK-based Helios Investment
Partners, said in a statement that a floating regasification
unit (FRU) built by a subsidiary of China State Shipbuilding
Corporation arrived in Ghana on Thursday.

Shell will supply the LNG under a long-term
contract, and the gas will be delivered to customers of Ghana's
public utility service, it said.

"Once operational, this FRU will allow the Tema LNG facility
to receive, re-gasify, store and deliver roughly 1.7 million
tonnes of LNG a year – 30% of Ghana's general capacity," said
project manager Edmund Agyeman-Duah in a statement.

Ghana tried to get an LNG import project off the ground for
years, but two leading operators, Golar and Hoegh
, withdrew due to delays over contracts.

Even as trade in LNG grows around the world, offering
environmental benefits over other fossil fuels, Africa is not
expected to become a large importer due to its vast gas
deposits, much of which are yet to be commercially developed.

Ghana, West Africa's second-largest economy and a major
producer of gold and cocoa, suffers from an unreliable supply of
electricity.

"As evidenced in similar fast growing economies in Asia and
Latin America, the introduction of LNG into the energy mix
serves as a catalyst for industrial and economic growth," said
Ogbemi Ofuya of Helios Investment Partners.
(Reporting by Christian Akorlie; Writing by Aaron Ross; Editing
by Kirsten Donovan)

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