Höegh LNG signed on 1 December 2016 an FSRU contract with Quantum Power Ghana Gas Limited (Quantum Power) for the Tema LNG import terminal located close to Accra in Ghana (Tema LNG Project). The Tema LNG Project is supported by the Ghana National Petroleum Corporation (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 USD 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 6 - 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.
FSRU Höegh Grace - Image courtesy: Höegh LNG
Höegh LNG's President and Chief Executive Officer, Sveinung J. S. Støhle, said in a comment: "We are delighted to have been awarded the contract with Quantum Power for their new LNG import terminal in Ghana, and look forward to completing the project together with our client. Our modern FSRU solutions offer our client the quickest, most cost efficient and flexible way of importing LNG. With this contract we have full contract coverage for our FSRU fleet."
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."
About Quantum Power:
Quantum Power is a pan-African energy infrastructure investment platform, currently operating in Ghana, Kenya, Mozambique, Namibia, Nigeria, Rwanda, Senegal, South Africa and Zambia, with administrative offices in London and Cyprus. Quantum Power is affiliated with the Quantum Pacific Group, an international group of businesses with interests across a broad range of industries and geographies, focusing on shipping, chemicals, energy and transportation.
The Ghana National Petroleum Corporation (GNPC) is Ghana's National Oil Company (NOC) established in 1983 by PNDC Law 64, to undertake the exploration, development, production and disposal of petroleum. The Corporation, which started operations in 1985, is partner in all Petroleum Agreements in Ghana and operator of the Voltaian Basin onshore exploration project. GNPC is also the national Gas Sector Aggregator in Ghana, and aims to supply efficient fuel to meet Ghana's increasing energy needs.
About Höegh LNG:
Höegh LNG provides floating energy solutions and operates worldwide with a leading position as owner and operator of floating LNG import terminals; floating storage and regasification units (FSRUs), and is one of the most experienced operators of LNG Carriers (LNGCs). Höegh LNG's vision is to be the industry leader of floating LNG solutions and the strategy is to continue to focus growth plans on the FSRU market, with the objective of securing long-term contracts with strong counterparts at attractive returns. Höegh LNG is a Bermuda based company with established presence in Norway, Singapore, the UK, USA, Indonesia, Lithuania, Egypt and Colombia. The company employs approximately 110 office staff and 500 seafarers.
Source: Höegh LNG