Tema LNG Terminal project lacks transparency
The Tema LNG Terminal Company (TLTC), which is believed to
be controlled by Helios, China Harbour Engineering Company and a local Company (unkown company),
has entered into a BOOT agreement with Ghana Port and Harbor Authority to build
an LNG terminal, including a breakwater and a regasification plant, to convert
LNG into Natural Gas.
Rosneft, counterparty to the Terminal in a through-put-like
Agreement with the TLTC, and with Ghana National Petroleum Corporation (GNPC)
as off take of the processed natural gas from the Regasification LNG Terminal.
However, there is little, if any, information about the
structure of ownership of this project, the details of the agreements where
GNPC and GPHA are counterparties to the Gas Agreement with Rosneft and a BOOT Agreement
with TLTC respectively.
With regards to the local company that has interest in the
Tema LNG Terminal company very little is known; it is important that for a
project of such magnitude and importance to the country that the
capitalization, that is, source of funding and beneficial owners of this local
company is known.
Also unclear is the financing of the regasification
Terminal, which would include a breakwater, nor how the financing cost would be
amortized in the final gas price to the consumer; This is critical as GNPC will ultimately be
paying for the project through a facility user charge while the TLTC takes the
execution risk. The final gas price will be based on a delivery cost to the end
user, mainly the IPPs and VRA, whose plants are in the Tema Enclave
On a related issue, it is not clear when is the reverse flow
of natural gas, from West to East (W2E), is to be completed with compression
capability although already captured in GNPC’s 2017/18 approved budgets at an
estimated amount of US$120 million. Also unknown is how much gas (in mmSCF/day)
will be able to flow from W2E and when this will be achieved; in 2019 or 2020.
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