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Spanish company wins contract to operate Tema LNG regasification terminal

BY: graphic.com.gh
Spanish company wins contract to operate Tema LNG regasification terminal
Spanish company wins contract to operate Tema LNG regasification terminal

Spain's liquefied natural gas (LNG) terminal operator, Reganosa, has been awarded the contract to operate and maintain the Tema LNG regasification terminal which is currently under construction, the company said in a statement on January 7, 2020.

Tema LNG Terminal Company (TLTC), which owns the 2.34 billion cubic metre/year terminal, awarded Reganosa the contract for the operation and management of the floating storage unit (FSU) and floating regasification unit (FRU). as well as the associated six-kilometre gas pipeline and a pressure reduction and metering station connected to the existing pipeline network. The company did not disclose the financial details of the deal.

The company in a statement said the contract consolidates its position "as a reference company in the maintenance and operation of energy infrastructures, and reinforces its international expansion process. From pre-feasibility phases to commercial operations, over the last three years, it has provided services of various kinds in 14 countries on four continents.

"Tema LNG’s floating regasification unit (FRU) arrived in Ghana on 7 January 2021, allowing TLTC to start delivering LNG to customers through its unique energy terminal in the first quarter of 2021".

The statement said Tema LNG, backed by Helios Investment Partners and Africa Infrastructure Investment Managers (AIIM) is the first offshore LNG receiving terminal in sub-Saharan Africa.

"The terminal will employ the innovative combination of the FRU twinned with an existing LNG carrier to receive, store and regasify LNG. This system provides Ghana with all the functionality of a large scale FRU-terminal, but with added flexibility, allowing it to respond to rapidly increasing domestic gas demand with a cleaner and more affordable energy solution".

The project manager of TLTC, Mr Edmund Agyeman-Duah said: “The Tema LNG terminal aims to meet Ghana’s growing energy demand through an innovative yet cost-efficient, reliable supply. Once operational, this FRU will allow the Tema LNG facility to receive, regasify, store and de- liver roughly 1.7 million tonnes of LNG a year – 30% of Ghana’s general capacity. Tema LNG’s year-round supply of gas will enable the Ghana National Petroleum Corporation (GNPC) to supply reliable and cost-effective gas into the Tema power and industrial enclave while strengthening West Africa’s energy security.”

Mr Ogbemi Ofuya of Helios Investment Partners said: “The Tema LNG terminal project supports Ghana’s ambitions to continue on its trajectory as one of the fastest-growing economies in Afri- ca, by delivering the energy infrastructure to support accelerated industrialisation. 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. The year-round, guaranteed supply of LNG and piped gas through the Tema LNG terminal facilitates forward planning and investments in receiving infrastructure by power plants, mines and industries across the West Africa region who are currently reliant on more expensive liquid fuels. The switch to gas also delivers a significant environmental benefit and supports the transition to cleaner-burning fuels in the region by reducing CO2 emissions and eliminating sulphur emissions, in line with the Paris Climate Accord objectives.”

Reganosa’s CEO, Emilio Bruquetas said: “We are so proud to contribute our knowledge and experience to this unique project for the development of Ghana and Sub-Saharan Africa. We are pleased to collaborate with TLTC on what is our first Africa-based project. We continue to grow in Spain, promoting a green and digital economy, and at the same time we are reinforcing our internationalization process”.

The purpose-built FRU, which was built by Jiangnan Shipbuilding, a subsidiary of China State Shipbuilding Corporation and left the Jiangnan shipyard at the end of November.

The FRU will be located within the Tema Port, where TLTC has constructed additional marine infrastructure that will allow for cost-efficient LNG loading and regasification without affecting maritime and port traffic in the Gulf of Guinea.

LNG will be supplied under a long-term contract with Shell. The onshore reception facilities will receive the gas from the FRU via subsea pipelines, before delivering natural gas to the GNPC and its customers.