Ghana Approves 2nd Gas Processing Plant to Strengthen Energy Security, Industrial Growth

  • The second gas processing plant will be pivotal in monetising gas from offshore oil projects.
  • Ghana currently operates a single gas processing plant with a capacity of 150mmscf/d.

In a significant step toward enhancing energy security and industrialisation, Ghana’s Cabinet has approved plans to develop a second gas processing plant, doubling the country’s gas processing capacity.

This initiative, spearheaded by the Ministry of Energy and Green Transition in partnership with the Ministry of Finance, will optimise Ghana’s 2.1 trillion cubic feet of gas reserves while addressing power supply challenges through gas-to-power solutions.

Ghana operates a single gas processing plant at Atuabo, in the western Ellembelle district, with a capacity of 150 million standard cubic feet per day (mmscf/d).

The new second plant, located at the same site, will add another 150 mmscf/d, bringing the total processing capacity to 300 mmscf/d. This expansion is critical to ensuring reliable electricity generation, reducing reliance on imported fuels, and strengthening industrial growth.

The African Energy Chamber (AEC) has commended Ghana’s commitment to maximising domestic gas resources, noting that gas is the future of Africa’s energy landscape. With this new processing facility, Ghana is setting a precedent for leveraging indigenous resources to drive economic development and energy sustainability.

The second gas processing plant will play a pivotal role in monetising gas from offshore oil projects, including:

  • The Jubilee and TEN fields, where operator Tullow Oil is ramping up output
  • The Jubilee South East Project, which came online in 2023, currently produces 95,000 daily barrels.
  • ⁠Planned upgrades to the TEN field’s FPSO facility and a 2025-2026 drilling program to boost gas production

By expanding processing capacity, Ghana can utilise more domestic gas, minimise flaring, and improve overall energy efficiency, strengthening its long-term energy strategy.

The government’s approval of the second gas plant aligns with its broader energy ambitions, as Ghana has 17 oil and gas projects planned for development by 2027. With $700 million needed annually for fuel imports, expanding local processing capacity will reduce import dependence, enhance industrial output, and secure a stable electricity supply.

At a recent press conference, Ghana’s Minister of Energy and Green Transition emphasised the project’s strategic importance, stating that the country is taking bold steps toward energy security and sustainability.

NJ Ayuk, Executive Chairman of the AEC, echoed this sentiment, highlighting that Ghana is positioning itself as a leader in Africa’s energy transition, stating,

“By prioritising gas infrastructure, Ghana is not only boosting production capacity but laying the foundation for future growth across the oil and gas sector. The country is fast becoming a model for how African nations can harness their resources to fuel economic expansion. With a second gas processing plant, Ghana is on track to become a key petroleum hub in West Africa.”

As Ghana accelerates domestic energy production and industrialisation, the second gas processing plant marks a transformative step in its energy strategy.

By maximising its natural gas resources, Ghana is strengthening its power sector, attracting investment, and paving the way for long-term economic stability. This move will shape the country’s energy future for decades to come.

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