The Ghanian subsidiary of Quantum Pacific, an industrial investment group owned by Israeli billionaire Idan Ofer, signed a deal with London-based Golar LNG to build a $500 million liquefied natural gas import terminal.
The offshore facility will be located near the eastern port city of Tema in Ghana.
The Tema terminal will transport gas directly to state-run power generator and supplier Volta River Authority (VRA) to help boost power generation.
The project is expected to be online by mid-2016, Chief Executive of Quantum Power Ghana Gas Don Ackah told Reuters.
Ghanian President John Mahama endorsed the Tema terminal as a way for the country to have cheaper alternatives for power generation.
The VRA currently spends about $20 million every two weeks purchasing crude, Reuters said.
The spending is putting financial pressure on Ghana as it struggles to deal with soaring budget deficits and a weak currency.
Golar will provide an offshore floating storage and regasification unit for the terminal.
Ackah said Golar is in talks to have subsea and onshore pipeline networks to transport gas to Tema built by French oil services company Technip.
The floating unit will have a delivery capacity of 250 million cubic feet of LNG per day, or 1.75 million tonnes annually, Ackah said.
The unit is being constructed by South Korean builder Samsung Heavy Industries.
Quantum is also in talks with global oil companies, including BP, to supply gas to the terminal.
The Ghanaian government is also planning a state-to-state supply arrangement for LNG to be delivered to the terminal from Qatar.