Ghana Ports and Harbours Authority (GPHA) has signed a concession agreement with Tema LNG Terminal Company Ltd, to allow for the construction and operation of a Liquefied Natural Gas (LNG) Terminal within the Tema port. Tema LNG Terminal Company Ltd. is controlled by Helios Investment Partners, the world’s largest Africa-focused private equity fund.

The concession is expected to deliver an annual revenue in excess of US$6 million to GPHA throughout the total concession period. The Terminal will be transferred to the government (Ghana National Petroleum Corporation (GNPC) and GPHA) after 12 years.

China Harbour Engineering Company has been contracted to construct the terminal. It will be completed in 18 months and is estimated to cost in excess of some US$350 million, of which US$200 million would be spent directly in Ghana.

The LNG Terminal is being constructed on the back of a 12-year gas supply agreement that was executed between the GNPC and Rosneft, a global LNG trader and the world’s largest listed oil producer. Rosneft subsequently engaged Tema LNG Terminal Company for the provision of the regasification services.