Höegh LNG inked a floating storage and regasification unit (FSRU) contract with Quantum Power Ghana Gas for the Tema LNG import terminal located close to Accra in Ghana. The Tema LNG Project is supported by the Ghana National Petroleum Corp. (GNPC), Ghana's national oil and gas company.
The contract is for a period of 20 years with a five-year extension option for charterer and is expected to generate an average annual EBITDA of around US$36 million.
The contract is subject to Quantum Power obtaining necessary governmental approvals, financial close and both parties' board approval. The infrastructure construction for the project is planned to start mid-2017 and expected delivery time for the FSRU is six to 12 months following commencement of the construction work. The FSRU will be provided from Höegh LNG's portfolio of FSRUs, including units under construction, the planned conversion FSRU or planned newbuilding orders.
Quantum Power's CEO, Matty Vengerik, said in a statement "We are delighted to partner with Höegh LNG to deploy this cost-efficient and clean fuel supply infrastructure solution to Ghana. This is the first such project to be implemented in sub-Saharan Africa. Höegh LNG's FSRU solution is a key service component of the natural gas delivery chain that will enable the execution of the Tema LNG Project as well as supplying the growing demand of natural gas in the Tema region and beyond. We expect the LNG import terminal to transform the reliability and competitiveness of the power generation and natural gas markets in Ghana and are looking forward to a long-term relationship with Höegh LNG."