(Ecofin Agency) - Ghana National Petroleum Corporation (GNPC) on Tuesday announced that it has entered into a heads of terms with Quantum Power for the construction and operation of the LNG import facilities at Tema.

According to GNPC, the project is to have an annual capacity of about 3.40 million tons of LNG (500 Mmscf/d of gas), using a floating storage and regasification unit (FSRU) anchored 12km offshore Tema. Meanwhile, a connected sub-sea and onshore pipeline is to supply the natural gas to Ghana’s National Oil Company and its customers onshore.

The two companies in a joint statement revealed that operation on the Tema LNG project, which includes a capital cost of more than $550 million, is expected to begin by the end of this year. The project, will be executed on a build-own-operate-transfer (BOOT) basis with the assets shifting to GNPC following the project’s 20-year term, LNG World News reports.

“The LNG project will play an increasing role in meeting Ghana’s growing energy demand; providing the Ghanaian power generation industry with a highly reliable and clean fuel supply to meet projected power and industrial needs over the next 20 years,” the statement said.

Anita Fatunji