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Ghana to recoup $151m in Natural Gas Liquids, save $1bn yearly with new gas plant
Ghana to recoup $151m in Natural Gas Liquids, save $1bn yearly with new gas plant
By: Nii Ammui Fio | 3 mins read
Ghana is set to significantly boost its energy independence and reduce costly fuel imports with the planned establishment of a second gas processing plant (GPP II), which is projected to recover Natural Gas Liquids (NGLs) worth approximately $151 million annually and save the country up to $1 billion in liquid fuel import costs each year.
This development follows the official submission of the final report by the Implementation Committee of GPP II to the Steering Committee at the Ministry of Energy and Green Transition.
The report provides a comprehensive roadmap for delivering the new gas facility, covering technical requirements, financing, regulatory considerations, and stakeholder input.
Beyond financial gains, the project is expected to generate over 2,500 jobs—both direct and indirect—across its construction and operational phases, positioning Ghana as a regional hub for gas processing and energy exports.
Minister for Energy and Green Transition, John Abdulai Jinapor, who received the report, reaffirmed the government’s urgency in acting on the committee’s recommendations.
“Today’s submission reflects our commitment to advancing Ghana’s gas future. GPP II is not merely a project; it is a crucial tool for achieving energy independence, fostering job creation and driving industrial transformation,” he said.
The Minister also expressed appreciation to key contributors behind the report’s preparation, stating:
“I extend sincere gratitude to the Chairman of the Core Technical Committee, Hon. Richard Gyan-Mensah (MP) and Deputy Minister for Energy & Green Transition, the Project Development Coordinator, Mr. Guure Brown Guure and all Implementation Committee members for their relentless efforts, strategic insights, and unwavering dedication to the national interest.”
The Ministry, in a statement, described the report’s submission as a major step forward in the country's energy roadmap:
“The submission represents a significant milestone in Ghana's initiative to enhance domestic gas processing capabilities and strengthen energy security for industrial and power sector development.”
The GPP II Implementation Committee was officially inaugurated on May 12 by Energy Minister John Jinapor and Finance Minister Dr. Cassiel Ato Forson. At the time, the finance minister issued a 4-week deadline for the finalisation of the implementation plan.
Ghana currently spends over $1 billion annually on liquid fuel to power thermal plants, an expense that Energy Minister Jinapor describes as a heavy burden on both the economy and ordinary citizens. The second gas plant is being introduced as a long-term strategic solution to curb this dependence.
The GPP II will follow the model of the country’s first gas processing facility, the Atuabo Gas Plant, which was commissioned in 2015 under former President John Mahama. Operated by Ghana National Gas Company (Ghana Gas), the $1 billion Atuabo project was designed to process more than 180,000 tonnes of LPG annually for domestic use.
Despite progress in gas infrastructure, Ghana’s energy sector remains financially strained, with over $2 billion in accumulated debt undermining power generation and distribution. Concerns continue to grow over the sector’s operational efficiency and fiscal sustainability.
In response, Minister Jinapor has pledged that the government is exploring innovative financial models to address the ongoing crisis. He emphasized that solutions will be geared toward unlocking investment and improving infrastructure needed for a resilient, sustainable energy supply.
