China Harbour Engineering Company (CHEC) has signed a US$350 million contract for the construction of a liquefied natural gas (LNG) terminal in Ghana.

The Tema LNG Terminal Project is a private sector funded and led project, sponsored by Rosneft of Russia, and Helios Investment Partners, the world's largest Africa-focused private equity fund.

The project is underpinned by a long-term gas supply agreement between the Ghana National Petroleum Corporation (GNPC) and Rosneft.

At the XXII St. Petersburg International Economic Forum in May, Rosneft and GNPC signed the package of documents assuming the delivery of LNG over a 12-year period to the port of Tema, and its regasification using the processing capacities of Tema terminal in order to subsequently supply the natural gas to GNPC.

Rosneft subsequently engaged Tema LNG Terminal Company for the provision of the regasification services. The new terminal will have a construction period of 18 months, and will provide 2 million tonnes of LNG every year.

China Harbour Engineering Company is already one of the contractors for the Tema port expansion project. Jiangnan Shipyard of China will construct the floating regasification facility.

According to local publication Business Ghana, a concession agreement has been signed between the Ghana Ports and Harbours Authority (GPHA) and the Tema LNG Terminal Company to allow for the siting and operation of the facility within the Tema Port.

The construction contract was signed by Ogbemi Ofuya, the director, Tema LNG Terminal Company Ltd, and Lin Yichong, chairman, China Harbour Engineering Company.

A high-level meeting between an NNPC delegation and CNPC Management was held on the sidelines of the recent Forum on China-Africa Cooperation (FOCAC) Summit in Beijing. The contract signing was witnessed by Ghana's President Akufo-Addo. "If we are going to succeed in pushing the industrial development of our country rapidly, the supply of gas, which will mean even more affordable rates of power, to our country, is now a matter of very great importance for us," he says.