Quantum Power to provide LNG to Tema power market

Quantum Power Ghana Gas Ltd is set to provide LNG to Tema power companies and manufacturers in the first quarter of 2016.

LNG is natural gas converted to liquid form for ease of storage or transportation across long distances. The company is developing the integrated infrastructure needed to import liquefied natural gas (LNG), store it, re-gasify it and deliver it to large-scale users in Tema.

Spokespersons for the company disclosed this on the sidelines of a two-day international LNG workshop hosted by the Ministry of Energy and Petroleum with support from Quantum Power in Accra recently.

Mr Matty Vengerik, a representative of UK parent company Quantum Power Limited explained: “Quantum Powers’ gas solution involves floating storage and regasification unit (FSRU) technology. This significantly lowers cost and delivery time for LNG projects”. Quoting the Deputy Minister for Energy and Petroleum who opened the workshop Mr Vengerik said that the use of LNG could reduce fuel costs to the power industry by as much as 25%: “As the honourable Deputy Minister observed, a significant reduction in fuel costs can mean reduced power tariffs. It could also mean increased power generation, manufacturing and jobs”.

Asked how much gas Quantum Power will provide Mr Vengerik replied that the project is scalable. “Our initial output can provide the needs of most of the large-scale gas users anticipated to operate in Tema by 2016. As demand in the Tema market expands we can bring additional regasification units on the FSRU online”.

Asked how the Quantum Power project affects Ghana’s ambitions to produce its own gas the Chief Executive of Quantum Power Ghana Gas Ltd, Mr Don Ackah observed “Part of the elegance of the FSRU solution is that we are viable both as a medium-term bridge to indigenous gas production or as a long-term solution. If as we all hope Ghana’s indigenous gas production catches up with the power demand and even cheaper natural gas becomes available in the next ten years we can simply sail our FSRU away and set up operations elsewhere. If there continues to be a shortfall we can extend our project life as required”.

Quantum Power Ghana Gas Ltd has signed an MoU with the Ministry of Energy and Petroleum under which Quantum will develop the LNG infrastructure in Tema and work with the State to source LNG for national and even regional use. In addition to this MoU Quantum has acquired a provisional license from the Energy Commission for the development of its facilities.

The Ministry of Energy and Petroleum hosted the LNG workshop to build the capacity of large-scale gas users and the energy sectors in Ghana, Togo and Benin generally and to enable an effective stakeholder discussion about the prospects and challenges of using LNG in Ghana.

For Further information please contact:

Don Ackah, Chief Executive, Quantum Power Ghana Gas Ltd

Tel: +233 30 279 7622 / Cell: +233 26576820.

email: don.ackah@quantum-power.com

Edwin Ehrlich, Quantum Power Ltd

Tel: +44 20 729 03400 Cell: + 972 544 269 208.

Email Edwin.Ehrlich@quantum-power.com