The Africa Sustainable Energy Centre (ASEC) has urged the government not to hand over the planned second Gas Processing Plant of the Ghana National Gas Company to a private entity,
The report indicates that the Africa Sustainable Energy Centre (ASEC) has urged the government not to hand over the planned second Gas Processing Plant of the Ghana National Gas Company to a private entity, warning that such a move would weaken Ghana’s energy security, increase power production costs and undermine long-term national interests.
It further notes that in a press release issued on Wednesday, July 8, the energy policy group stated any decision to privatise the proposed Ghana Gas Processing Plant Train 2 would amount to a major strategic mistake rather than a simple commercial arrangement.
ASEC stated it strongly objects to “any move by the Government of Ghana to hand over the planned second Gas Processing Plant (GPP Train 2) of the Ghana National Gas Company to a private entity”.
According to the Centre, the issue goes beyond business and should be treated as a matter of national economic and energy policy.
“Handing over GPP Train 2 to the private sector would not merely be a commercial transaction but a severe, irreversible missed opportunity for the nation,” the statement said.
It added that, when the matter is assessed through “the lens of economic logic, national energy security, and structural alignment”, only one conclusion emerges: “the state must maintain absolute ownership of GPP Train 2.”
ASEC stated that allowing a private operator to take control of the plant would disrupt the state’s current fuel supply structure for thermal power generation.
It explained that under the existing Tolling Agreement with Independent Power Producers (IPPs), the Government of Ghana took responsibility for supplying fuel for thermal plants and designated Ghana Gas as the state vehicle for processing and distributing domestic gas.
“Under the current Tolling Agreement with Independent Power Producers (IPPs), the Government of Ghana assumed responsibility for supplying fuel for thermal power generation and established Ghana Gas as the exclusive national vehicle to harness, process, and distribute domestic gas,” the statement said.
In ASEC’s view, introducing a private operator into that arrangement would weaken the structure rather than improve it.
The Centre also warned that privatising the plant would create an additional layer of commercial interest in a sector that is central to national electricity supply.
According to ASEC, a private operator would naturally seek to maximise profit, and that could push up the cost of power production while the state still carries much of the underlying risk.
“It creates an unnecessary middleman,” the statement said.
“A private operator would prioritize maximizing profits, increasing power production costs and exposing the state to commercial risks while the government continues to bear the financial and structural liability.”
