The Emerging Africa Infrastructure Fund (EAIF) has lent $31m over 10 years to Access LNG, a provider of specialist floating LNG infrastructure, to support the construction of a new Liquid Natural Gas (LNG) storage and regasification facility at Tema port in Ghana.

Financial close was achieved on November 16.

EAIF’s loan is part of the financing for the Floating Regasification Unit (FRU) which will be integrated with a Liquid Natural Gas (LNG) carrier serving as a Floating Storage Unit.

The fixed infrastructure element of the project, was 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, Director at EAIF’s managers, Ninety One, said: “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.”

The new Tema facility answers Ghana’s need for greater fuel security and optimal supply.

The project will reduce the cost of power generation for Ghana’s power sector, provide an adequate margin of fuel reserves and benefit the ongoing expansion of the country’s electricity and gas grids.

The construction phase of the Tema project began in 2018.

Some 600 people are involved in creating the facility.

Access LNG was established as a joint venture between Helios Investment Partners and Gasfin Development 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, Partner at Helios Investment Partners, said: “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.”

This project also positions Access LNG as a first mover in bringing right-sized LNG infrastructure solutions to sub-Saharan Africa, establishing a model for future developments across the region.

With global LNG markets currently well supplied for the foreseeable future, there is a great opportunity for Access to support markets switching to natural gas as a clean, cheap transition fuel as we push developments to support a greener, more efficient energy economy”

Roland Fisher, Director at Gasfin Development, said: “We are extremely proud of our involvement with Access LNG and to have earned the trust and support of EAIF for this ground-breaking project. As with all infrastructure developments, the new LNG terminal at Tema has required the concerted effort and alignment of multiple stakeholders to achieve. “