Access LNG B.V secures US$31m loan for construction of LNG storage facility

GHANA – The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG), has lent US$31 million over 10 years to Access LNG B.V., a provider of specialist floating LNG infrastructure, to support the construction of a new LNG storage and regasification facility at Tema port in Ghana.

EAIF’s loan is part of the financing for the Floating Regasification Unit (FRU) which will be integrated with a Liquid Natural Gas (LNG) carrier serving as a Floating Storage Unit.

Construction of the FRU and the FSU are both at advanced stages. Delivery of the vessels is expected before the end of the year. EAIF’s loan is part of the financing for the FRU which will be integrated with an LNG carrier serving as a FSU.

“The new terminal at Tema is an innovative approach to securing reliable and cost-efficient gas supply. The investment by EAIF will contribute to reducing carbon emissions, contributing to Ghana’s long-term energy needs and strengthening its economic stability and economic development efforts,” Martijn Proos, a Director at EAIF’s managers, Ninety-One, said.

“The project gives local and international power and industrial sector investors added confidence in the future of the country, which is good for jobs, good for business, good for communities and good for Ghana.”

Martijn Proos – Director, EAIF’s managers, Ninety-One

“The project gives local and international power and industrial sector investors added confidence in the future of the country, which is good for jobs, good for business, good for communities and good for Ghana.”

Tema is home to a number of Ghana’s largest power stations and to industry that relies on energy from them.

The new facility enables thermal power generators to move from burning light cycle oil (LCO) and heavy fuel oil (HFO) to using natural gas, which is up to 30% cheaper, produces 30% less CO2 and almost no sulfur dioxide, which is the cause of acid rain. Industrial users have welcomed the development and the flexibility and reliability of supply that the LNG Terminal will deliver.

The fixed infrastructure element of the project was financed under a separate financing package, and consists of a breakwater, mooring facilities, a subsea pipeline and an 8 km onshore pipeline to take the gas from the port to Tema’s industrial area.

“We have worked successfully with EAIF over many years on the financing of telecommunications and affordable housing projects across Africa. We have benefited from its deep knowledge of Ghana’s energy sector and its expertise in port infrastructure developments, gained in other parts of Africa,” Ogbemi Ofuya, a Partner at Helios Investment Partners, said.

“Our project at Tema positions the energy sector in Ghana for both growth and environmental sustainability so that when the world recovers from Covid-19, Ghana will have the energy infrastructure needed to help it compete.”

The new Tema facility answers Ghana’s need for greater fuel security and optimal supply. The project will reduce the cost of power generation for Ghana’s power sector, provide an adequate margin of fuel reserves and benefit the ongoing expansion of the country’s electricity and gas grids.

Access LNG B.V was established as a joint venture between Helios Investment Partners, a leading Africa focused private investment firm and Gasfin Development SA, a pioneer in LNG infrastructure, to develop and operate new LNG facilities for developing markets. Delivering the floating infrastructure for the new LNG facility at Tema is the first project for the joint venture.

“We are extremely proud of our involvement with Access LNG and to have earned the trust and support of EAIF for this ground-breaking project. As with all infrastructure developments, the new LNG terminal at Tema has required the concerted effort and alignment of multiple stakeholders to achieve,” Roland Fisher, a Director at Gasfin Development SA, said.

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