Ghana National Petroleum Corporation (GNPC) -Ghana’s National Oil Company, and Quantum Power, the pan-African energy infrastructure investment platform,are pleased to announce that they have signed Heads of Terms for the construction and operation of the liquefied natural gas (LNG) storage, regasification and delivery facilities at Tema, Ghana (the “Tema LNG Project”).

The Tema LNG Project will have the scalable ultimate capacityto receive, store, regasify and deliver, at steady state,of about3.40 million tons of LNG per year, equivalent to 500 million standard cubic feet of gas per day, utilizing a state-of-the-art dedicated floating storage and regasification unit (FSRU) moored off-shoreTema. An associated sub-sea and onshore pipeline willdeliver the natural gas to GNPC and its customers onshore. The Tema LNG Project, comprising a capital outlay of over $550 million, will be implemented on a build-own-operate-transfer (BOOT) basis with the assets transferring toGNPC after the Project’s 20-year term.

Commencement of operations is scheduled for the end of 2016 and,given its design, the Tema LNG Project has a built-in scalability, which would make it play an increasing role in meeting Ghana’s growing energy demand; providing the Ghanaian power generation industry with a highly reliable and clean fuel supply to meet projected power and industrial needs over the next 20 years.The Tema LNG Project will provide GNPC with the flexibility to managevolatility in power demand and fluctuations in domestic gas supply, while mitigating the effect of unpredictable rainfall on Ghana’s power balance.

The Tema LNG Project has beenunder development for threeyears, involving some of the world's most experienced engineering teams collaborating onaninnovative design to address the specific maritime challenges in the Gulf of Guinea,while assuring optimal year round operability.The terminal, which will be located 12 kilometres off Tema’s shore allows for cost efficient refuelling and regasification without affecting maritime and port traffic.
Alexander Mould, CEO of GNPC, stated, “We are pleased to announce ouragreement with Quantum Power. As the national gas sector aggregator, GNPC is leading Ghana’s efforts to develop the gas-to-power value chain supporting the Government’s vision of energy security for accelerated economic growth.The Tema LNG Project is a critical component in achieving this vision as it allows for the diversification of fuel supply sources, enhancing flexibility and reliability.  It guarantees GNPC contracted capacity of 250 million standard cubic feet of gas per day, for regasification of competitively priced LNG.”

Matty Vengerik, CEO of Quantum Power, added,“We are delighted to Partner GNPC 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. The combination of increased certainty-of-supply with the cost savings inherent in LNG supply has a significant multiplier effect on the economy at large, as it reduces risk for commercial and industrial activities and increases Ghana’s attractiveness as an investment destination. Furthermore, the project will spur directly and indirectly technology and know-how transfer, and maritime and energy employment opportunities, in addition to its highly leverage able indirect contribution to economic activity and employment in the country. Quantum Power is proud that GNPC has selected our project as one of its national strategic initiatives”.