Emerging Africa Infrastructure Fund (EAIF) said it has sanctioned a $31 million loan with a 10-year term to Access LNG, for the Tema LNG project.
EAIF said in its statement the project partners have reached the financial close for the project on November 16.
Access LNG is a joint venture between Helios Investment Partners, an Africa-focused private investment firm and Gasfin Development, an LNG infrastructure player, to develop and operate new LNG facilities for developing markets.
Tema is home to a number of Ghana’s largest power stations and to an 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, the statement reads.
FRU, FSU delivery expected before end-2020
The construction of the floating regasification unit (FRU) and the floating storage unit (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. The FRU will work in conjunction with an LNG carrier that will serve as the FSU.
The vessel is under construction at the Jiangnan Shipyard. TGE Marine has won the contract to deliver the cargo handling system and tank material package for the 28,000-cbm FRU.
The fixed infrastructure element of the project was financed under a separate financing package. That element 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.
The construction phase of the Tema project began in 2018.
According to Gasfin’s website, the company has led the design of the entire project and the fabrication of the floating infrastructure, helping deliver the 2 mtpa+ LNG import plant.
The FSU will work in conjunction with an upgraded 127,500-cbm LNG carrier, to deliver 250 mmscfd natural gas. It will also provide facilities to bunker, reload or breakbulk LNG.
The long-term supply deal between Royal Dutch Shell and Ghana National Petroleum Corp supports the project.
However, the project is open and able to catalyze new energy developments both domestically and across the region, Gasfin said.