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FRU arrives at Ghana LNG terminal

GHANA A floating regasification unit (FRU) has arrived energy mix serves as a catalyst for industrial and
on site for Ghana’s first LNG import terminal, economic growth.’
The Tema LNG project with commercial operations scheduled to start The terminal’s use of an FRU twinned with an
will take up to 1.7mn in the current quarter. LNG carrier for storage is “innovative”, Reganosa
tpy of LNG. The Tema LNG project will take up to 1.7mn noted.
tonnes per year (tpy) of LNG, enabling local “This system provides Ghana with all the
thermal power plants (TPPs) and industrial functionality of a large-scale FRU-terminal, but
facilities to switch to gas from costlier and dirtier with added flexibility, allowing it to respond to
liquid fuels. Its developer is Access LNG, a part- rapidly increasing domestic gas demand with a
nership between Africa-focused fund Helios cleaner and more affordable energy solution,” the
Investment Partners and LNG infrastructure Spanish company said.
developer Gasfin. The contract award comes after financial
The FRU arrived on January 7 and was sup- close was reached on the project in Novem-
plied by Jiangnan Shipbuilding, a subsidiary of ber last year, following receipt of a $31mn loan
China State Shipbuiding. It left the Chinese ship- from the Emerging Africa Infrastructure Fund
yard in late November. (EAIF).
The terminal had originally been due to start Most of Ghana’s TPPs run on light crude
receiving gas in mid-2020 but its launch was oil and fuel source, making them both ineffi-
delayed, in part because of disruptions caused cient and expensive. The government wants to
by the coronavirus (COVID-19) pandemic. Its expand the role of gas to bring down energy
LNG will be supplied by Royal Dutch Shell under costs, and increase access to reliable power
a long-term contract, while regasified volumes supply. The lack of stable electricity supply has
will be sold to Ghana National Petroleum Corp. been a major impediment to economic growth
(GNPC) for onward delivery to customers. in the country.
Spanish LNG terminal operator Reganosa Ghana first began developing its gas market
also reported on January 8 that it had obtained in 2008 by importing pipeline gas from Nigeria,
a contract to operate and maintain the terminal. via the West African Gas Pipeline. But supplies
The contract covers the FRU and an LNG carrier have not lived up to expectations, with Nigerian
that will serve as a floating storage unit (FSU), suppliers often failing to provide contracted
along with a 6-km gas pipeline and a pressure volumes.
reduction and metering station connected to the There have been a number of attempts to
existing pipeline network. advance LNG import projects in the country
“The Tema LNG terminal project supports over the years, but so far, the Tema LNG scheme
Ghana’s ambitions to continue on its trajectory as is the only one to have got off the ground. In
one of the fasting growing economies in Africa, addition to LNG imports, the country has looked
by delivering the energy infrastructure to sup- to develop its own gas reserves, including at the
port accelerated industrialisation,” Hellios part- Tullow-operated Jubilee field, launch in 2014,
ner Ogdemi Ofuya commented. “As evidenced the TEN deposits, which came on stream in
in similar fast-growing economies in Asia and 2016, and the Sankofa field, which saw first gas
Latin America, the introduction of LNG into the in 2018.™

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