Sub-Saharan Africa’s first liquefied natural gas (LNG) import terminal at Tema can turn Ghana into a petroleum hub, Tema LNG managing director Edmund Agyeman-Duah tells The Africa Report.
The project, built at a cost of $350m, can be a “driver of growth” for Ghana and the region, says Agyeman-Duah. It will provide year-round guaranteed supply and promote investment in industries that have relied on more expensive oils with erratic availability.
Thermal plants located at Tema have until now relied on heavy fuel oils and diesel imports to meet demand. Industries that will benefit from LNG include power infrastructure, mining and ceramics, which uses natural gas as a feedstock, Agyeman-Duah says.
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The African Development Bank (ADB) has said that power is currently the single largest constraint on Ghana sustaining high GDP growth. Current natural gas demand in the country is not being reliably met by local gas production or serviced by the West African Gas Pipeline, the bank says, adding that the Tema project will facilitate electricity grid expansion.