Ghana could save close to US$500 million annually by switching from liquid fuels to natural gas for power generation, Technical Advisor to the Minister of Energy and Green Transiti
The report indicates that ghana could save close to US$500 million annually by switching from liquid fuels to natural gas for power generation, Technical Advisor to the Minister of Energy and Green Transition on Petroleum, Ing. Dr Sulemana Yussif, has said.
It further notes that he stated expanding the country’s gas-processing capacity would be critical to achieving the savings as Ghana seeks to reduce its reliance on more expensive liquid fuels for thermal power generation.
“If we switch from liquid, let’s say LCO, light crude oil, to generate power and use gas, we are saving closer to half a billion on an annual basis,” Dr Sulemana said.
He was speaking at a Ghana Institution of Engineering (GhIE) Branch 4 discussion in Accra on September 3, 2026, on bottlenecks in Ghana’s energy-sector infrastructure.
The forum focused on the proposed second gas processing plant (GPP2) and an onshore natural gas pipeline, which are expected to expand the country’s capacity to process and transport gas for power generation and industrial use.
Dr Sulemana stated the proposed GPP2 would complement Ghana’s existing gas-processing infrastructure and provide additional processed gas for thermal power plants.
Ghana currently operates the Atuabo Gas Processing Plant, while the government is pursuing the second facility as part of its broader gas-to-power strategy. The Energy Ministry says GPP2 is intended to strengthen domestic energy security and support industrial and power-sector development.
Officials say preparations for the project are advanced, with mechanical completion expected in the first quarter of 2028 and operations targeted for the second quarter, subject to the project staying on schedule.
The government has previously highlighted the cost of relying on liquid fuels for power generation, with the Energy Ministry saying the country spends hundreds of millions of dollars annually on such fuels.
Dr Sulemana stated moving more thermal generation onto domestic natural gas would therefore have significant implications for Ghana’s foreign exchange position.
General Manager for Engineering and Maintenance at Ghana Gas, Ing Maxwell Kwame Kelly, stated the additional gas-processing capacity could also help moderate increases in electricity costs.
“Obviously, as you grow as a country, things will go up. But the rates at which things will go up will be reduced, yes,” he said.
He argued that the economic benefits of GPP2 should be assessed against the cost of not having sufficient gas-processing capacity.
“If you consider the alternative to not having the gas processing plant, you realise that the benefit is colossal,” he said.
