A memo seeking Cabinet approval for the construction of a second gas processing plant at Atuabo is expected to be submitted before the end of the month, the Minister of Energy and Green Transition, Mr John Abdulai Jinapor, has announced.
The memo, being prepared jointly with the Ministry of Finance, contains proposals on how the project will be financed and how it fits into the government’s broader financial plans. It also outlines the funding structure and financial commitments linked to the project.
Mr Jinapor disclosed this during a visit by the Vice President, Professor Naana Jane Opoku-Agyemang, to the Ministry of Energy and Green Transition in Accra yesterday.
He described the first gas processing plant as a “game-changer” for the country and said construction of the second plant would begin immediately after Cabinet approval.
According to the minister, the second gas processing plant would utilise indigenous gas to secure a reliable fuel supply and sustain Ghana’s recent gains in the energy sector.
“Increasing domestic gas processing capacity is critical as Ghana’s energy mix continues to shift from hydro to thermal power, which requires a steady fuel supply,” he stated.
Mr Jinapor recalled that when the current administration took office, the energy sector faced numerous challenges. From January to December 2024, Ghana experienced load shedding every month, with power deficits reaching about 700 megawatts at peak.
He noted that the sector was also burdened with debts exceeding $3 billion and faced serious fuel supply challenges.
The minister said several reforms were introduced to stabilise the sector, including a review of contracts to ensure value for money. Of the 347 contracts reviewed at the Electricity Company of Ghana, 202 were cancelled, resulting in significant savings.
He added that changes to the cash waterfall mechanism and the renegotiation of contracts with Independent Power Producers further reduced costs and improved payments across the energy value chain.
Mr Jinapor also revealed that the shift from liquid fuel to gas for thermal power plants had generated major savings, noting that Ghana had not imported diesel or light crude oil for power generation since July.
The Vice President, Professor Naana Jane Opoku-Agyemang, commended the ministry, describing its work as “a strong and positive story that benefits all Ghanaians.”
She said her visit was meant to encourage the ministry and assure it of the government’s full support in both success and challenging times.
Professor Opoku-Agyemang praised the minister and his team for their performance, saying they had made the country proud. She welcomed efforts to diversify the energy mix, particularly the renewed focus on solar energy, and urged the ministry to learn from past initiatives that did not achieve the desired results.
Touching on domestic energy use, she suggested exploring systems where cooking gas could be piped directly to homes, similar to electricity, especially in planned communities, describing such ideas as worth studying to improve convenience and safety.
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