Endeavor Energy, General Electric (GE), and their consortium partners, have agreed to a supply term sheet with Shell and entered into exclusive sale and purchase agreement negotiations regarding a LNG supply agreement for the Ghana 1000 project.
The project will be delivered in two phases featuring a floating storage and regasification unit (FSRU) and associated infrastructure required to import LNG.
It will generate reliable energy for Ghana as well as help lower the cost of power by about 35%, when compared to power generated from light crude oil.
"Importing LNG offers tremendous flexibility for Ghana to manage its power fleet."
The first phase of the project will add 125MW to the grid and is expected to be completed in late 2016.
Endeavor Energy CEO Sean Long said: "Importing LNG offers tremendous flexibility for Ghana to manage its power fleet.
"As a lower cost alternative to light crude oil, LNG can be used not only on a long-term basis for new power projects, but can be imported on a spot basis to balance any short-term disruptions from Ghana's domestic gas production or from diminished hydro production in years with low rainfall."
In February 2015, Endeavor Energy and GE signed an agreement with Excelerate Energy for the reservation of an FSRU that will provide storage and regasification of LNG for the Ghana 1000 project.
Endeavor Energy will own 65% stake in the project, which is anticipated to reach financial close in December 2015.
The company will provide construction management and commercial management services.