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Ghana, Quantum Terminals

Mobilising finance to expand access to fuel

Ghana Quantum Terminals

Ghana’s economic development continues to be hampered by infrastructure deficits, particularly in its energy and transport sectors. Domestic production of Liquid Petroleum Gas (LPG) began in 2014, however a lack of associated infrastructure has constrained access to the fuel and large areas of the country remain reliant on charcoal and wood gathered from largely non-renewable sources. Having identified LPG as a cleaner, cheaper alternative to domestic fuelwood and imported oil and coal, the Government of Ghana is committed to increasing its penetration in Ghana’s energy sector.

The project is based in Atuabo near the country’s Jubilee Oil Fields. Quantum Group, part of a Ghanaian oil and gas trading group, required finance to construct three 500m³ LPG storage tanks, three loading gantries and associated infrastructure to increase the availability of LPG in Ghana. The company encountered difficulties in securing the appropriate mix of hard and local currency finance. GuarantCo’s Ghanaian Cedi 12m (US$5.4m) guarantee enabled the company’s main banker, Standard Chartered Bank Ghana, to overcome barriers to investment to provide the local currency component of the finance alongside the hard currency required to deliver the project.

The Atuabo facility is the first storage terminal dedicated to servicing domestically produced LPG from the Jubilee Oil Fields and Quantum Terminals is key to the government’s plans for long-term fuel security. The project will deliver improved access to affordable LPG for an expected 2 million people, reducing Ghana’s reliance on gathered wood, enabling greater engagement in economic activity and slowing dangerous rates of deforestation. LPG has substantially lower CO² emissions per kilowatt hour than oil, coal and biomass. Supporting the construction of vital storage and distribution infrastructure will reduce CO² emissions, contribute to Ghana’s fuel security and promote future economic development.