Ghana: EAIF lends $31m to Helios-backed company
The Emerging Africa Infrastructure Fund (EAIF), managed by Ninety One, is lending $31 million over 10 years to Access LNG, a provider of specialist floating liquid natural gas (LNG) infrastructure, to support the construction of a new LNG storage and regasification facility at Tema port in Ghana. Financial close was achieved on 16 November.
Tema is home to a number of Ghana’s largest power stations and to industries that rely 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, which is up to 30% cheaper, produces 30% less Co2 and almost no sulphur dioxide, which is the cause of acid rain.
Construction of the floating regasification unit and the floating storage unit 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 floating regasification unit, which will be integrated with an LNG carrier serving as a floating storage unit.
The fixed infrastructure element of the project, financed under a separate financing package, consists of a breakwater, mooring facilities, a subsea pipeline and an 8km onshore pipeline to take the gas from the port to Tema’s industrial area.
Martijn Proos, a director at EAIF’s managers, Ninety One says, “The new terminal at Tema is an innovative approach to securing reliable and cost-efficient gas supply. The investment by EAIF will contribute to reducing carbon emissions, contributing to Ghana’s long-term energy needs and strengthening its economic stability and economic development efforts. The project gives local and international power and industrial sector investors added confidence in the future of the country, which is good for jobs, good for business, good for communities and good for Ghana.”
Access LNG was established as a joint venture between Helios Investment Partners, a leading Africa focused private investment firm and Gasfin Development SA, a pioneer in LNG infrastructure, to develop and operate new LNG facilities for developing markets. Delivering the floating infrastructure for the new LNG facility at Tema is the first project for the joint venture.
Ogbemi Ofuya, a partner at Helios Investment Partners says, “We have worked successfully with EAIF over many years on the financing of telecommunications and affordable housing projects across Africa. We have benefited from its deep knowledge of Ghana’s energy sector and its expertise in port infrastructure developments, gained in other parts of Africa. Our project at Tema positions the energy sector in Ghana for both growth and environmental sustainability so that when the world recovers from Covid-19, Ghana will have the energy infrastructure needed to help it compete.
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