Equatorial Guinea, Ghana to sign 15 years LNG supply deal

Ghana and Equatorial Guinea are closing in on an agreement for the supply of liquefied natural gas (LNG) to augment Ghana’s energy security.

“My presence here is a consummation of this bilateral agreement, and represents a significant step towards matching Equatorial Guinea’s excess gas supply to Ghana’s ever growing demand,” the country’s president Akufo-Addo said during his three-day official visit to Equatorial Guinea.

He added that a government-to-government deal is expected to be signed later this week.

“It is my expectation that during this visit, we shall sign a government-to-government Heads of Agreement for the supply to Ghana of LNG from Equatorial Guinea, for a period of fifteen years, reviewable every five years. If cocoa was the first seed to nourish the relationship between our two countries, gas is going to be the second,” he added.

Under the heads of agreement, Equatorial Guinea would supply LNG to Ghana for a period of 15 years, with the deal reviewable every five years.

The Memorandum of Understanding provides that Equatorial Guinea will supply the equivalent of 150 million standard cubic feet of natural gas per day to Ghana.

The MoU also provides for the building and operation of an LNG regasification terminal in Takoradi.

Continental Integration

With Ghana and Equatorial Guinea being are two important members of the African Union (AU), President Akufo-Addo stressed that he is willing to do whatever he can to strengthen the AU.